Core Viewpoint - Huaxin Securities initiates coverage on Mixue Group (02097) with a "Buy" investment rating, projecting significant earnings growth through 2027 [1] Financial Performance - For the first half of 2025, Mixue Group reported total revenue of 14.875 billion yuan, a year-on-year increase of 39% [1] - The net profit for the same period reached 2.718 billion yuan, reflecting a 44% year-on-year growth, with attributable net profit of 2.693 billion yuan, up 43% [1] - The gross margin slightly decreased by 0.2 percentage points to 31.64% [1] Expense Analysis - Sales and distribution expenses as well as administrative expenses increased as a percentage of revenue, rising by 0.04 percentage points and 0.3 percentage points to 6.14% and 2.94%, respectively [1] - It is anticipated that these expense ratios will stabilize in the second half of the year [1] Profitability Metrics - The net profit margin and attributable net profit margin increased by 1 percentage point and 0.5 percentage points to 18.27% and 18.10%, respectively, showing slight year-on-year growth [1] Strategic Focus - The company aims to enhance its supply chain, build brand IP, and optimize store operations while accelerating domestic expansion and exploring overseas markets, which is expected to further boost performance [1]

Core Insights - The core viewpoint of the article highlights the strong financial performance of Mixue Group in the first half of 2025, driven by supply chain improvements, brand IP development, and optimized store operations [2]. Financial Performance - Mixue Group reported a revenue of 14.87 billion yuan, representing a year-on-year increase of 39.3% [2]. - The net profit for the company reached 2.72 billion yuan, showing a year-on-year growth of 44.1% [2]. Store Expansion - The total number of global stores reached 53,014, with an increase of 9,796 stores compared to the same period last year [2]. - Stores located in third-tier cities and below accounted for 27,804, making up 57.6% of the total stores in mainland China, with an addition of 5,707 stores year-on-year [2].