[HSBC gives Mixue Group a target price of HK$544.1 for the first time
Rating Hold] HSBC Research issued a report stating that it gave Mixue Group (02097.HK) a target price of HK$544.1 and a hold rating for the first time. HSBC said that Mixue's end-to-end supply chain can further support its leading position in low-priced product positioning. The bank expects the company's revenue and net profit compound annual growth rate (CAGR) to be 17.5% and 17.4% from 2024 to 2027. It is expected that the number of Mixue Ice City stores will reach 69,239 in 2027. Mixue Ice City's overseas expansion is still an option. In the first nine months of 2024, overseas markets accounted for 5.1% of Mixue's revenue and 10.6% of its total stores; 99% of its overseas stores are located in Southeast Asia (mainly Indonesia and Vietnam). The bank believes that replicating its success in the domestic market in overseas markets is an option to create value.
