Investment Rating - The industry investment rating is "Buy" [5] Core Insights - The snack wholesale industry is rapidly expanding, with a focus on penetrating lower-tier markets. The retail market for food and beverages is projected to grow from CNY 5.5 trillion in 2019 to CNY 7.1 trillion in 2024, with a CAGR of 5.2% [13][18] - The company, Mingming Hen Mang, is a leading player in the snack wholesale sector, utilizing an efficient model to reshape retail formats. It has achieved significant growth through a franchise model and has expanded its store count to 14,394 by the end of 2024 [1][28] - The company has a strong presence in lower-tier markets, with a store network covering 1,224 counties and a county coverage rate of 66% [2][41] Summary by Sections Industry Overview - The snack wholesale industry is experiencing rapid growth, with the segment of leisure food and beverages maintaining over 50% of GMV share. The retail scale for leisure food and beverages is expected to reach CNY 4.9 trillion by 2029, with a CAGR of 5.8% from 2024 to 2029 [13][18] Company Profile - Mingming Hen Mang operates two brands, "Snacks Are Busy" and "Zhao Yiming," and has opened over 1,000 stores in 2022 and 2023. The company aims to exceed 10,000 stores by 2024, with an average of over 20 new stores opening daily [1][28] - The company has a total GMV of CNY 55.5 billion and continues to expand its franchise model, with 7,241 franchisees by the end of 2024 [1][41] Business Model - The company reduces supply chain intermediaries and offers high-quality products at competitive prices. It has a gross margin of approximately 20% based on its 2024 GMV and revenue [2][52] - Mingming Hen Mang maintains a diverse SKU selection, with 3,380 SKUs in stock, and offers products at an average price 25% lower than similar products in offline supermarkets [3][55] Financial Performance - The company has shown rapid revenue growth, achieving CNY 393 billion in revenue in 2024, with a CAGR of 203% from 2022 to 2024. Adjusted net profits also increased significantly during the same period [38][39] - The gross margin has remained stable, with slight increases from 7.5% in 2022 to 7.6% in 2024, while the adjusted net profit margin has also seen a slight rise [39][40] Market Position - Mingming Hen Mang holds a market share of 1.5% in the leisure food and beverage retail sector, ranking as the leading retailer in this category [24][32] - The competitive landscape in the food and beverage retail sector is relatively fragmented, with a CR5 of 6.0% in the leisure food and beverage segment [24][26]