Core Insights - The article emphasizes the "high quality and affordable" product philosophy of Mixue Group, which operates two main brands: Mixue Ice City and Lucky Coffee, targeting the mass consumer market [1][2] - Mixue Group has established a strong supply chain system, with over 60% of beverage ingredients produced in-house, enabling significant scale expansion through a franchise model [1] - The company is experiencing robust financial metrics, including leading expense ratios, gross margins, and net margins in the industry, supported by stable cash flow [1] Industry Analysis - The global ready-to-drink beverage market shows significant regional growth, with China and Southeast Asia presenting substantial potential [1] - The tea beverage sector in China has developed a multi-tiered consumption pattern, with affordable and mass-market products driving industry growth [1] - The coffee market is also witnessing multiple growth opportunities, with increasing demand and a shift towards lower price points enhancing consumer frequency [1] Competitive Advantages - Mixue Ice City's "Snow King" IP creates a unique traffic barrier through self-operated management and significant exposure [2] - The industrial-grade supply chain system supports the high-quality and affordable strategy, ensuring a closed-loop from procurement to production and logistics [2] - The company's strong supply chain allows for cost optimization and product standardization, enhancing operational efficiency [2] Profitability Forecast - The company is expected to achieve net profits of 57.12 billion, 68.17 billion, and 76.51 billion yuan from 2025 to 2027 [2] - The investment recommendation is to "buy" based on the unique advantages of Mixue Ice City, strong supply chain control, and dual growth potential in domestic and international markets [2]

Core Viewpoint - The article highlights the impressive performance and global expansion strategy of Mixue Group, emphasizing its strong market position in the ready-to-drink beverage sector and its innovative approach to internationalization [5][6][10]. Group 1: Financial Performance - In the first half of the year, Mixue Group reported revenue of 14.87 billion yuan, a year-on-year increase of 39.3%, with a gross profit of 4.71 billion yuan, up 38.3%, and a net profit of 2.72 billion yuan, reflecting a growth of 44.1% [5]. - The company maintains a competitive pricing strategy, with products priced around 6 yuan, solidifying its position as the "king of affordable ready-to-drink beverages" in China [6]. Group 2: Market Position and Expansion - Mixue Group leads the domestic ready-to-drink beverage market and has successfully expanded into international markets, particularly in Southeast Asia, where it holds a market share of 19.5% in the ready-to-drink tea segment as of 2023 [7][8]. - By June 30, 2025, Mixue Group is expected to surpass Starbucks in total store count, with over 53,000 global stores, including 4,733 overseas locations [7][10]. Group 3: Globalization Strategy - The company has adopted a unique globalization strategy, focusing on strong supply chain management, the popular "Snow King" IP, and localized operations to enhance its international presence [12][21]. - Mixue Group has established a comprehensive supply chain that includes procurement, production, logistics, and quality control, allowing for cost advantages and product quality stability [13][14]. Group 4: Brand and Marketing - The "Snow King" IP has become a significant cultural symbol, contributing to brand recognition and customer loyalty, with over 54.2 billion views on Douyin [18][19]. - The company has effectively utilized its supply chain and IP to create a distinctive brand identity, which has been instrumental in its marketing efforts [19][33]. Group 5: Future Growth Potential - The ready-to-drink beverage market is projected to grow significantly, with an expected compound annual growth rate of 19.8% from 2023 to 2028 in Southeast Asia [8]. - Mixue Group's successful experience in the beverage sector has laid the groundwork for its coffee brand, "Lucky Coffee," which is also expanding internationally [29][31].