Investment Rating - The report suggests a forward-looking investment value in Mingming Hen Mang and Wancheng Group, anticipating an acceleration in profitability for the leading players in the industry during 2025-2026 [5][61]. Core Insights - Mingming Hen Mang has emerged as a leader in the snack retail sector through a strong merger with Zhao Yiming, resulting in a combined entity with 14,394 stores across 28 provinces in China and a GMV of 55.5 billion [3][7]. - The company's rapid growth is attributed to the expansion of franchise stores and increased sales volume, with a projected revenue of 39.34 billion and adjusted net profit of 9.13 billion for 2024, reflecting a CAGR of 203% and 235% respectively from 2022 to 2024 [3][18]. - The Chinese snack and beverage market is valued at 3.7 trillion, with significant growth potential in the down-market and discount channels, where Mingming Hen Mang holds a market share of 1.5% [4][11]. Summary by Sections Company Overview - Mingming Hen Mang is recognized as a leading food and beverage retailer in China, formed by the merger of "Snacks Are Busy" and "Zhao Yiming" in November 2023, with a focus on operational efficiency and brand integration [3][7]. Industry Trends - The report highlights the ongoing penetration of the discount model in the snack market, with a fragmented retail landscape where the top five players hold only 6% market share [4][11]. Performance Metrics - Revenue and profit growth are driven by the rapid expansion of franchise stores, with a significant increase in store count from 1,902 in 2022 to 14,394 in 2024, achieving a CAGR of 175% [28][29]. - The adjusted net profit margin is expected to improve, with a stable gross margin of 7.6% and an adjusted net profit margin of 2.3% for 2024 [22][21]. Future Outlook - Key future drivers include operational efficiency improvements, upgrades in discount supermarket formats, and steady expansion into Southeast Asia, with initial steps taken in Vietnam [42][52]. - The report anticipates that the domestic discount sector has room for growth, aiming to match the overseas penetration rates of over 15% [5][61].

Market Overview - The Hang Seng Index rose by 1.96% to 22,504.68 points during the trading days from April 28 to May 2, 2023, with the Hang Seng Tech Index showing a strong increase of 4.64% to 5,244.06 points [1] - Recent easing of geopolitical tensions has led to a rebound in risk assets, with the Hong Kong stock market rising for the third consecutive week, nearing recovery from the declines caused by the "reciprocal tariffs" imposed during the Trump administration [1] Economic Indicators - The Hong Kong Monetary Authority (HKMA) intervened by purchasing HKD 46.539 billion (approximately USD 6 billion) to maintain the stability of the Hong Kong dollar against the US dollar, triggered by the strong-side convertibility undertaking at 7.75 HKD per USD [2] - The HKMA noted an increase in demand for Hong Kong dollars related to stock investments, which supports the currency's value [2] Company Performance - Hong Kong Exchanges and Clearing Limited (HKEX) reported record revenue of HKD 68.57 billion for Q1 2025, a 32% year-on-year increase, and a net profit of HKD 40.77 billion, up 37% year-on-year [3] - The average daily trading amount for Hong Kong stocks reached a historical high of HKD 242.7 billion, with the IPO market remaining strong, raising HKD 18.7 billion from 17 companies, nearly quadrupling the amount from the same period last year [3] New Listings - Hunan Mingming Henmang Commercial Chain Co., Ltd. submitted its IPO application to HKEX, aiming to raise funds for supply chain upgrades, store network optimization, brand building, and digital investment [4][5] - The company, formed by the merger of "Snacks Very Busy" and "Zhao Yiming Snacks," is projected to achieve a GMV of RMB 55.5 billion in 2024, making it the largest leisure food and beverage retail chain in China [4][5] Industry Trends - The leisure food market in lower-tier cities is expected to reach a GMV of RMB 2.3 trillion in 2024, with growth rates surpassing those in higher-tier markets [5] - The market is undergoing rapid consolidation, with an estimated 50% of lower-tier companies expected to exit by 2025 [5]

Economic Performance - In the first quarter, Shaoxing's GDP reached 200.9 billion yuan, with a year-on-year growth of 7.2%, ranking first in the province [1] - The three major industries showed growth: primary industry added value of 3.9%, secondary industry 7.4%, and tertiary industry 7.1% [1] - Industrial production increased significantly, with a 12.0% year-on-year growth in the added value of large-scale industries [1] Industry Insights - The top ten industries in Shaoxing showed a growth pattern of "eight positive and two negative," with significant increases in high-tech sectors such as computer and electronic equipment manufacturing [1] - Traditional industries also performed well, with chemical raw materials and textile manufacturing growing by 22.1% and 12.0% respectively [1] - The added value growth rates for large, medium, small, and micro enterprises were 3.8%, 10.0%, 16.5%, and 35.6% respectively [1] Future Growth Potential - Shaoxing aims to reach a GDP of 1 trillion yuan within five years, having set a target in early 2022 [2] - The city recorded a GDP of 779.1 billion yuan in 2023, with a growth rate of 7.8%, and is projected to reach 836.9 billion yuan in 2024, growing at 6.5% [2] - Fixed asset investment in Shaoxing grew by 4.1% year-on-year, with a notable 15.5% increase when excluding real estate development [2] Trade and Market Challenges - Shaoxing's foreign trade faced challenges, with a total import and export volume of 88.4 billion yuan in the first quarter, down 16.4% year-on-year [2] - Exports decreased by 15.3% to 81.2 billion yuan, while imports fell by 27.1% to 7.2 billion yuan [2] - The local government is actively seeking to support export enterprises in overcoming tariff barriers and expanding market access [3] Strategic Initiatives - Shaoxing is implementing a low-altitude economy development plan, with a significant investment of 2.05 billion yuan for the first phase of a low-altitude infrastructure project [3] - The city is looking to transform its economy by learning from successful peers like Changzhou, which has excelled in advanced manufacturing [3]

Core Viewpoint - Hunan Mingming Hen Mang Commercial Chain Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, aiming to leverage its dual-brand strategy and significant market presence in the snack retail sector [1] Company Overview - Mingming Hen Mang operates two brands: "Snacks Very Busy" and "Zhao Yiming Snacks," which were merged in November 2023, maintaining a dual-brand strategy [1] - The company is projected to achieve a gross merchandise value (GMV) of RMB 55.5 billion in 2024, with over 1.6 billion transactions [1] - As of December 31, 2024, Mingming Hen Mang will have 14,394 stores, making it the largest snack retail chain in China by GMV [1] Business Model - The company employs a low-margin, high-volume strategy, achieving profitability through high sales efficiency, low expense ratios, and rapid inventory turnover [3] - Gross margins are reported between 7.5% and 7.6%, with net profit margins increasing from 1.7% to 2.1% from 2022 to 2024 [3] - The company simplifies its supply chain by sourcing directly from manufacturers, which allows for competitive pricing, with average prices approximately 25% lower than those in offline supermarkets [3] Market Dynamics - The snack retail sector is experiencing rapid expansion, particularly in lower-tier cities, with a focus on cost-effectiveness and product variety [2][5] - The market is currently characterized by intense price competition, with a growing demand for both cost-effectiveness and quality among consumers [2] - The market for snack retail is projected to continue growing, with a compound annual growth rate (CAGR) of 6.5% in lower-tier markets from 2019 to 2024 [5] Competitive Landscape - The industry is undergoing consolidation, with larger brands acquiring smaller ones, leading to a significant reduction in the number of regional snack brands [6] - Approximately 100 regional snack brands have disappeared in 2024, with expectations that over 50% of smaller companies will be eliminated by 2025 [6] - Mingming Hen Mang emphasizes the importance of balancing cost-effectiveness with product quality to maintain competitive advantage in the evolving market [6] Future Plans - The company plans to use the proceeds from its IPO to enhance supply chain capabilities, upgrade store networks, empower franchisees, and invest in brand development and technology [6]

Core Viewpoint - The snack chain giant "Ming Ming Hen Mang" has officially submitted its IPO application to the Hong Kong Stock Exchange, backed by notable investors such as Sequoia Capital and the food company "Hao Xiang Ni" [1] Group 1: Business Expansion and Strategy - The company plans to use the funds raised from the IPO for store expansion, supply chain optimization, and digital transformation to deepen market penetration and meet diverse consumer demands [1] - As of the end of 2024, "Ming Ming Hen Mang" has opened 14,394 stores across 28 provinces, with approximately 58% located in county and town areas [1][3] - The company operates two main brands, "Snacks Hen Mang" and "Zhao Yi Ming Snacks," which are popular among consumers due to their affordable pricing strategy [1] Group 2: Financial Performance - The company's revenue for 2022, 2023, and 2024 was RMB 4.29 billion, RMB 10.30 billion, and RMB 39.34 billion, respectively, showing significant growth [5][6] - Gross profit for the same years was RMB 319 million, RMB 772 million, and RMB 3 billion, indicating a strong upward trend [5][6] - Net profit figures for 2022, 2023, and 2024 were RMB 71.65 million, RMB 217.53 million, and RMB 829.16 million, respectively, with adjusted net profit also showing substantial increases [5][7] Group 3: Market Position and Consumer Engagement - "Ming Ming Hen Mang" has become the largest snack and beverage retail chain in China by GMV in 2024, ranking fourth in the overall food and beverage retail industry [1][3] - The company has a membership base of 120 million, with 103 million active buyers and a high repurchase rate of 75% [5] - The company maintains a stable gross margin of 7.5%-7.6% from 2022 to 2024, with net profit margin increasing from 1.7% to 2.1% [8] Group 4: Digital Transformation - The company has established the largest digital team in China's snack and beverage specialty store sector, enhancing operational efficiency through a comprehensive digital system covering procurement, logistics, and store management [10]