Investment Rating - The report maintains a "Positive" investment rating for the leisure snack industry [1]. Core Insights - The bulk discount snack channel is fundamentally a business driven by traffic growth, benefiting from the "good, fast, and economical" model, which has allowed leading players to capitalize on the upgrading of lower-tier markets and improved channel efficiency. The total number of stores in the industry has rapidly expanded from 13,000 in January 2022 to over 40,000 currently, contributing to an increase in the share of specialty store channels from 7.6% in 2019 to 11.2% in 2024, with the market size of the leisure food and beverage sector expected to reach 3.7 trillion yuan by 2024 [4][13][8]. Summary by Sections 1. Review of Bulk Snack Channel Development and Future Opportunities - The leisure food and beverage market in China is projected to grow at a CAGR of approximately 5.5% from 2019 to 2024, reaching around 3.7 trillion yuan by 2024. The traditional supply chain is undergoing efficiency transformations due to urbanization, information equality, and logistics and digitalization improvements [8][13]. - The bulk snack channel, characterized as a hard discount model, has thrived by maximizing efficiency and price competitiveness, successfully capturing market share during the rise of value-conscious consumption and the new retail transformation [9][13]. - The number of bulk snack stores has surged from 13,000 in early 2022 to over 40,000, with leading companies like Mingming Hen Mang and Wancheng Group projected to achieve GMV of approximately 55 billion yuan and 43.5 billion yuan, respectively, in 2024 [13][8]. 2. Bulk Channel: Mingming Hen Mang vs. Wancheng - The competitive landscape is becoming clearer as the leading players transition from rapid expansion to mergers and acquisitions. The report highlights the distinct advantages of Mingming Hen Mang and Wancheng in terms of store distribution and operational efficiency [65][66]. - By the end of 2024, both Mingming Hen Mang and Wancheng are expected to operate over 14,000 stores each, with a combined market share of approximately 68%, reflecting a 20 percentage point increase from 2023 [65][73]. 3. Future Profitability and Valuation Considerations for Bulk Channels - The report emphasizes that the profitability of leading players is expected to improve as the competitive landscape stabilizes, with a focus on self-owned brand strategies to enhance scale and profitability. The self-owned brand strategy of Mingming Hen Mang aims to provide differentiated products and higher added value, aligning with future consumer demands [4][13][65]. - The report draws parallels with international discount retail leaders, indicating that similar strategies could lead to sustained growth and valuation improvements, with potential PE ratios exceeding 30x for successful brands [4][13].

Core Viewpoint - Hunan Mingming Hen Mang Commercial Chain Co., Ltd. has officially submitted its IPO application to the Hong Kong Stock Exchange, following the merger of its brands "Snacks Are Busy" and "Zhao Yiming Snacks" in November 2023 [2][5]. Group 1: Company Overview - Mingming Hen Mang was formed by merging "Snacks Are Busy," founded in March 2017, and "Zhao Yiming Snacks," established in January 2019 [2]. - As of December 31, 2024, the company operates 14,394 stores across 28 provinces in China, with approximately 58% located in county and town areas [2]. - The company focuses on a "volume sales model," achieving a GMV of 55.5 billion RMB in 2024 and over 1.6 billion transactions throughout the year [2]. Group 2: Financial Performance - The company reported revenues of 4.29 billion RMB in 2022, 10.30 billion RMB in 2023 (a 140.2% year-on-year increase), and 39.34 billion RMB in 2024 (a 282.17% year-on-year increase), resulting in a compound annual growth rate of 203% [10]. - Adjusted net profits for the past three years were 0.81 billion RMB, 2.35 billion RMB, and 9.13 billion RMB, with corresponding net profit margins of 1.89%, 2.28%, and 2.3% [10]. - The company’s total assets reached 101.68 billion RMB in 2024, with a debt-to-asset ratio of 43.67% [13]. Group 3: Management Team - The management team includes nine directors, with five executive directors led by Chairman and CEO Yan Zhou, and CFO Wang Yutong, who has extensive experience in financial management and investment [6][8]. - Wang Yutong joined the company in August 2023 and has a background in investment banking, having previously worked at Huaxing Capital and co-founded Mingyue Capital [8][10].

Core Viewpoint - The article discusses the IPO submission of Hunan Mingming Hen Mang Commercial Chain Co., Ltd. (Mingming Hen Mang), highlighting its rapid growth and unique business model in the food and beverage retail sector in China [1][2]. Group 1: Company Overview - Mingming Hen Mang is a leading food and beverage retailer in China, formed by the merger of two brands: "Snacks Hen Mang" and "Zhao Yiming Snacks" [3]. - The company operates a unique volume-based retail model, focusing on innovative product development and a strong in-store experience [3]. - As of the end of 2024, Mingming Hen Mang has a network of 14,394 stores, with approximately 58% located in county towns and rural areas, covering 66% of all counties in China [3]. Group 2: Financial Performance - In 2024, Mingming Hen Mang recorded a Gross Merchandise Volume (GMV) of RMB 55.5 billion, with over 1.6 billion transactions, making it the largest chain retailer in China's snack food sector [4]. - Revenue from 2022 to 2024 showed significant growth: RMB 4.286 billion in 2022, RMB 10.295 billion in 2023, and RMB 39.344 billion in 2024 [5]. - The core revenue source is from selling goods to franchisees, accounting for approximately 99% of total revenue during this period [5]. Group 3: Profitability Metrics - The gross profit for Mingming Hen Mang increased from RMB 319 million in 2022 to RMB 2.999 billion in 2024, with net profits rising from RMB 72 million to RMB 829 million in the same period [5]. - The adjusted net profit margins were 1.9% in 2022, 2.3% in 2023, and remained at 2.3% in 2024, indicating stable profitability [6]. Group 4: Inventory and Goodwill Concerns - The company has experienced rapid inventory growth, with inventory values reaching RMB 2 billion in 2022, RMB 6.32 billion in 2023, and RMB 16.74 billion in 2024 [7]. - Goodwill recorded was zero in 2022, RMB 2.25 billion in 2023, and remained at that level in 2024, primarily due to the acquisition of Zhao Yiming [7]. Group 5: Dividend and Shareholder Structure - Mingming Hen Mang declared a dividend of RMB 300 million to shareholders in March 2025, with significant portions of cash dividends flowing to the founders [8][10]. - As of April 2025, the ownership structure shows that the founders hold substantial voting rights, with Yan Zhou controlling 25.75% directly and additional percentages through various holding platforms [8][9].

Core Viewpoint - The merger of snack brands "Snack Busy" and "Zhao Yiming Snacks" has led to the establishment of "Mingming Busy," which plans to go public in Hong Kong, positioning itself as the largest leisure food and beverage retail chain in China by 2024 GMV [1][3]. Company Overview - Mingming Busy was formed from the merger of Snack Busy, founded in 2017, and Zhao Yiming Snacks, which started in 2019, completing the merger in November 2023 [2]. - The company operates a "volume retail model" that emphasizes supply chain reconstruction, innovative product development, and a pleasant shopping experience [2]. Financial Performance - Revenue figures for Mingming Busy are projected as follows: CNY 4.286 billion in 2022, CNY 10.295 billion in 2023, and CNY 39.344 billion in 2024 [3]. - Adjusted net profits are expected to be CNY 81 million, CNY 235 million, and CNY 913 million for the same years [3]. Revenue Structure - 99.5% of Mingming Busy’s revenue comes from selling products to franchise and direct stores, with franchise fees and service income accounting for less than 0.5% [4]. - The company has a diverse product range with 3,380 SKUs, including baked goods, snacks, and beverages [3]. Market Strategy - Mingming Busy focuses on the lower-tier market, with approximately 58% of its stores located in county and township areas, covering 1,224 counties in China [8]. - The company aims to provide high-quality, cost-effective products and services across various city tiers [8]. Business Model - The "thin profit, high sales" strategy has resulted in stable gross margins of 7.5%-7.6% and an increase in net profit margin from 1.7% to 2.1% from 2022 to 2024 [9]. - The company has streamlined operations by connecting directly with manufacturers, reducing inventory turnover days to 11.6 days [9]. Franchise System - Mingming Busy has significantly increased its franchise network from 994 in 2022 to 7,241 in 2024, providing comprehensive support to franchisees [6]. - The company employs a standardized management approach while allowing for customized store layouts to meet local demands [6]. Consumer Engagement - The company has achieved over 1.6 billion transactions in 2024, with a membership base of 120 million and a repurchase rate of 75% [10]. - Mingming Busy invests heavily in digitalization, enhancing operational efficiency through advanced systems for inventory and logistics management [10]. Industry Context - The Chinese leisure food and beverage retail market is projected to grow from CNY 3.7 trillion in 2024 to CNY 4.9 trillion by 2029 [10]. - Mingming Busy plans to use IPO proceeds for store expansion, supply chain optimization, and digital infrastructure development to enhance market penetration [10].

Core Viewpoint - The company "Mingming Hen Mang" has submitted its IPO application to the Hong Kong Stock Exchange, aiming to expand its market presence in the snack retail sector, with significant projected revenue growth and a unique business model focused on supply chain optimization and customer experience [1][3]. Company Overview - "Mingming Hen Mang" reported revenues of 4.286 billion yuan, 10.295 billion yuan, and 39.344 billion yuan for the years 2022, 2023, and 2024 respectively, with adjusted net profits of 81 million yuan, 235 million yuan, and 913 million yuan for the same years [1]. - The company operates under two snack brands: "Snacks Hen Mang" and "Zhao Yiming Snacks," which merged in November 2023 to form "Mingming Hen Mang" [1]. Business Model and Operations - The company employs a "bulk retail model" that focuses on supply chain reconstruction, innovative product development, and creating a pleasant shopping experience, leading to rapid growth [1]. - As of the end of 2024, the company plans to have 14,394 stores across 28 provinces and all tiered cities in China, with approximately 58% located in county and town areas [1]. Product Strategy - "Mingming Hen Mang" has established a standardized product selection mechanism that includes initial selection, tasting, trial sales, and promotion, with 3,380 SKUs in stock by the end of 2024, of which about 25% are customized products [2]. - The average number of SKUs per store is at least 1,800, which is double that of similar-sized supermarkets [2]. Financial Performance - The company has maintained a stable gross margin of 7.5%-7.6% from 2022 to 2024, with net profit margin increasing from 1.7% to 2.1% during the same period [2]. - The revenue model is primarily based on product sales to franchise and direct stores, with franchise fees and service income accounting for less than 0.5% of total revenue [2]. Market Position and Growth Potential - The retail snack sector in China is highly fragmented, with the top five chain retailers holding only 6.0% of the market share in 2024, indicating significant growth potential for "Mingming Hen Mang" [3]. - The company plans to use IPO proceeds for store expansion, supply chain optimization, and digital transformation to enhance market penetration and meet diverse consumer demands [3].

Core Insights - Hunan Mingming Hen Mang Commercial Chain Co., Ltd. has officially submitted its IPO application to the Hong Kong Stock Exchange, with Goldman Sachs and Huatai International as joint sponsors [1] - By the end of 2024, the company expects to achieve a retail sales volume (GMV) of 55.5 billion RMB and over 1.6 billion transactions, leading the "bulk sales model" in China [1][3] - As of December 31, 2024, the company will operate 14,394 stores across 28 provinces and all tiered cities in China, with approximately 58% located in county and town areas [1] Business Model and Growth - Mingming Hen Mang was formed by the merger of "Snacks Are Busy" and "Zhao Yiming Snacks" in November 2023, focusing on supply chain reconstruction and innovative product development [3] - The company has a total of 3,380 SKUs (stock-keeping units) by the end of 2024, with about 25% being customized products, enhancing product flexibility and consumer engagement [3] - The average SKU count per store is no less than 1,800, with a monthly introduction of 100 new products, creating a feedback loop that increases consumer loyalty [3] Financial Performance - Revenue figures for 2022, 2023, and 2024 are projected at 4.286 billion RMB, 10.295 billion RMB, and 39.344 billion RMB, respectively, with adjusted net profits of 81 million RMB, 235 million RMB, and 913 million RMB [5] - The revenue model is primarily based on product sales, with 99.5% of income derived from sales to franchise and direct stores, while franchise fees account for less than 0.5% [5] - The number of franchisees has grown from 994 in 2022 to 7,241 in 2024, indicating strong franchise growth and operational efficiency [5] Operational Efficiency - The company's gross margin has remained stable between 7.5% and 7.6% from 2022 to 2024, while the net profit margin has improved from 1.7% to 2.1% [7] - Mingming Hen Mang has optimized its supply chain by directly connecting with manufacturers, reducing inventory turnover days to 11.6 days, which allows for cost savings passed on to consumers and franchisees [7] - The company has implemented a fully digital ordering system and advanced warehouse and transportation management systems to enhance operational efficiency [7] Future Plans - The company plans to use the funds raised from the IPO primarily for store expansion and upgrades, supply chain optimization, and digitalization efforts to increase market penetration and meet diverse consumer needs [8]

Core Viewpoint - The company "Mingming Hen Mang" has submitted its IPO application, showcasing significant growth in retail sales and store expansion, positioning itself as a leading player in the Chinese snack retail market [1][3]. Group 1: Company Overview - "Mingming Hen Mang" operates 14,394 stores across 28 provinces and all tiered cities in China, with approximately 58% located in county and town markets, indicating a strong penetration into lower-tier markets [1]. - The company is recognized as the largest leisure food and beverage retail chain in China by GMV for 2024, and ranks as the fourth largest food and beverage retail chain overall [1]. Group 2: Financial Performance - The revenue figures for "Mingming Hen Mang" are reported as follows: 4.286 billion yuan in 2022, 10.295 billion yuan in 2023, and projected at 39.344 billion yuan in 2024 [3]. - Adjusted net profits for the same years are 81 million yuan, 235 million yuan, and 913 million yuan respectively, reflecting a strong upward trend in profitability [3]. Group 3: Business Model - The company's revenue model is primarily based on direct sales to franchise and direct stores, with 99.5% of revenue derived from product sales, while franchise fees and service income account for less than 0.5% [3]. - The number of franchisees has grown significantly from 994 in 2022 to 7,241 in 2024, indicating robust expansion and acceptance of the franchise model [3]. Group 4: Operational Efficiency - The company has optimized its supply chain by connecting directly with manufacturers, maintaining 36 warehouses and a 300-kilometer storage radius, which has reduced inventory turnover days to 11.6 [5]. - The gross margin has remained stable between 7.5% and 7.6% from 2022 to 2024, while the net profit margin has improved from 1.7% to 2.1%, demonstrating effective cost management and a "low-margin, high-volume" sales strategy [5].

按2024年休闲食品饮料GMV计算，鸣鸣很忙是中国最大的连锁零售商。 本文为IPO早知道原创 作者｜ Stone Jin 微信公众号｜ipozaozhidao 据 IPO早知道消息， 湖南鸣鸣很忙商业连锁股份有限公司 （以下简称 " 鸣鸣很忙 "）于2025年4 月28日正式向港交所递交招股说明书，拟主板挂牌上市，高盛和华泰国际担任联席保荐人。 创立于 2017年 的 "零食很忙" 同起步于 2019年的" 赵一鸣零食 " 在 2023年11月完成合并，整 合为 今天的 "鸣鸣很忙 集团 "。根据弗若斯特沙利文报告，在中国，鸣鸣很忙是消费者对于 休闲 食品饮料专卖店的首选品牌。 截至 2024年12月31日，鸣鸣很忙 的门店网络 由 14,394家门店构成，覆盖中国28个省份和所有 线级城市，且其中约58%的门店位于县城 和 乡镇。 2024年，鸣鸣很忙 的 GMV 为 555亿元。根 据弗若斯特沙利文 的 报告，按 2024年 休闲 食品饮料 GMV 计算 ，鸣鸣很忙是中国最大的连锁零 售商 ；按 2024年食品饮料GMV 计算 ，鸣鸣很忙亦 为 中国第四大连锁零售商 ，并保持高速增 长。 具体来讲，鸣鸣很 ...