Core Viewpoint - Guangzhou Yujian Xiaomian Catering Co., Ltd. has successfully listed on the Hong Kong Stock Exchange, raising approximately HKD 685 million for expansion and brand development [1] Financial Performance - Revenue is projected to grow from RMB 418 million in 2022 to RMB 1.154 billion in 2024, with a compound annual growth rate (CAGR) of 66.16% [1] - In the first half of 2025, the company achieved revenue of RMB 703 million, representing a year-on-year growth of 33.8% [1] - Adjusted net profit for the same period reached RMB 52.175 million, marking a significant increase of 131.56% year-on-year [1] Expansion Plans - The funds raised will primarily be used for restaurant network expansion, technology upgrades, and brand building [1] - The company plans to open approximately 150 to 180 new restaurants in 2026, 170 to 200 in 2027, and 200 to 230 in 2028, through both direct and franchise operations [1] Company Overview - Founded in 2014, Yujian Xiaomian focuses on Sichuan and Chongqing-style noodles, utilizing a combination of direct and franchise business models [1] - The number of restaurants has increased by 249.6% from 133 to 465, with an additional 115 restaurants in the pre-opening phase [1]

Core Viewpoint - Guangzhou Yujian Xiaomian Catering Co., Ltd., known as "Yujian Xiaomian," has successfully listed on the Hong Kong Stock Exchange, marking a significant milestone in its development as the first publicly traded Chinese noodle restaurant chain [1][4]. Company Overview - Founded in 2014, Yujian Xiaomian specializes in Sichuan-Chongqing style noodles and has rapidly expanded to 22 cities in mainland China and Hong Kong through a combination of direct operation and franchising [3]. - As of the latest feasible date, the number of restaurants has increased by 249.6% from 133 to 465, with an additional 115 new restaurants in preparation [3]. Market Position - According to a report by Frost & Sullivan, Yujian Xiaomian is the largest operator of Sichuan-Chongqing style noodle restaurants in China and the fourth largest Chinese noodle brand overall, with a projected compound annual growth rate (CAGR) of 43.2% in total merchandise transaction value from 2022 to 2024 [3]. Financial Performance - The company has demonstrated rapid growth, with revenue increasing from RMB 418 million in 2022 to RMB 1.154 billion in 2024, reflecting a CAGR of 66.16% [3]. - In the first half of 2025, Yujian Xiaomian achieved revenue of RMB 703 million, a year-on-year increase of 33.8%, and an adjusted net profit of RMB 52.175 million, up 131.56% [3]. Fundraising and Future Plans - The IPO raised approximately HKD 685 million, which will primarily be used for restaurant network expansion, technology upgrades, and brand development [3]. - The company plans to open approximately 150 to 180 new restaurants in 2026, 170 to 200 in 2027, and 200 to 230 in 2028, both through direct operation and franchising [3]. Vision and Strategy - The Chairman and CEO, Song Qi, stated that the listing is a crucial milestone for the company, which aims to provide high-quality, cost-effective dining experiences through digital operations and supply chain optimization, while promoting the internationalization of Chinese cuisine [4].

Investment Rating - The report suggests a cautious subscription for the company "Encounter Noodle" (2408.HK) [1][4] Core Insights - Encounter Noodle is the largest operator of Sichuan-Chongqing style noodle restaurants in China, with a network of 451 restaurants in 22 cities in mainland China and 14 in Hong Kong [2] - The Chinese noodle restaurant market is expected to grow at a CAGR of 11.0% from 2025 to 2029, outpacing the average growth of the Chinese fast food market at 9.0% [2] - The company has shown significant revenue growth, with projected revenues of 8.01 billion, 11.54 billion, and 7.03 billion CNY for the fiscal years 2023, 2024, and the first half of 2025, respectively, representing year-on-year growth rates of 91.47%, 44.21%, and 33.77% [3] - The company's net profit for the same periods is projected to be 0.46 billion, 0.61 billion, and 0.42 billion CNY, with year-on-year growth rates of 227.63%, 32.2%, and 95.77% [3] - The current median IPO price of 6.34 HKD corresponds to a PE ratio of approximately 67 for 2024, and assuming similar growth rates, a PE ratio of about 34 for 2025, indicating a high valuation [4] Summary by Sections IPO Details - The IPO price range is set between 5.64 and 7.04 HKD, with a median price of 6.34 HKD [1] - The total fundraising amount is estimated at 5.516 billion HKD [1] - The total number of shares available for subscription is 9,736,450, with 90% allocated for international placement and 10% for public offering [1] Company Performance - The company has expanded its store count significantly, with 252, 360, and 417 stores for the fiscal years 2023, 2024, and the first half of 2025, respectively [3] - Same-store sales have shown fluctuations, with a decline in 2024 attributed to price reductions, although daily orders have increased [3] - The direct restaurant profit margins have improved, reaching 12.5%, 13.3%, and 15.1% for the respective periods, benefiting from cost control and operational efficiency [3]

Core Viewpoint - Guangzhou Yujian Xiaomian Catering Co., Ltd. is accelerating its IPO process in Hong Kong, having received the overseas issuance filing notice from the China Securities Regulatory Commission and updated its IPO prospectus, indicating a strong potential for successful listing on the Hong Kong Stock Exchange [1] Financial Performance - In the first half of 2025, the company achieved revenue of 703 million, representing a year-on-year growth of 33.8%, with an adjusted net profit of 52.175 million, up 131.56% year-on-year, and an adjusted profit margin of 7.4%, an increase of 3.1 percentage points from the previous year [1] Restaurant Network Expansion - The number of restaurants increased by 239.1% from 133 to 451, covering 22 cities across 9 provinces in mainland China and Hong Kong, with 101 new restaurants in preparation, aiming to exceed 500 by year-end [1] - The company plans to strategically expand its direct-operated and franchised restaurant network to achieve sustainable growth, targeting both high-tier and lower-tier markets in mainland China, as well as Hong Kong and overseas markets [2] Future Growth Strategy - The company aims to open approximately 150 to 180 new restaurants in 2026, 170 to 200 in 2027, and 200 to 230 in 2028, both domestically and internationally, with IPO proceeds primarily allocated for restaurant network expansion, supply chain development, and digital capability enhancement [2] - The first overseas store in Singapore is under preparation, expected to open in December, with Southeast Asia identified as a new growth area [2]

Core Viewpoint - The company "Yujian Xiaomian" is preparing for an IPO on the Hong Kong Stock Exchange, indicating significant growth and expansion in the Chinese dining sector, particularly in the Sichuan-Chongqing flavor noodle market [1][2]. Group 1 - "Yujian Xiaomian" was founded by three post-85 graduates from South China University of Technology, who left their foreign enterprise jobs to start a noodle restaurant [1]. - The company began with a small 30 square meter shop in Guangzhou and has since expanded to nearly 400 locations across more than 20 cities [1].