HK Stock Market Move | MIXUE GROUP (02097) rose by over 10% to reach a new high, with its stock price increasing by over 80% in just five days of being listed. Its total market value has exceeded HK$140 billion.

MIXUE GROUP (02097) rose more than 10% to a high of 378 Hong Kong dollars, reaching a new high for the listing, an increase of more than 80% compared to the IPO price of 202.5 Hong Kong dollars. As of the time of writing, it had risen by 10.43%, to 377 Hong Kong dollars, with a trading volume of 1.15 billion Hong Kong dollars, and a total market value exceeding 140 billion Hong Kong dollars. Pacific Securities pointed out that the company achieves ultimate cost control through vertical integration of the supply chain, penetrates the sinking market with a low-price strategy, and then feeds back the supply chain efficiency with a super large-scale, forming a closed loop. Its moat lies in the continuously iterative supply chain capabilities and economies of scale. In addition, overseas expansion and Lucky Tea build the second growth curve. The current Southeast Asian ready-to-drink beverage market is in a period of rapid development, with a CAGR of 19.8% expected for 2023-2028, leading other regions globally. MIXUE is the largest tea beverage brand in terms of store scale in Southeast Asia, with 4792 overseas stores as of September 2024. The company is also expanding in developed countries such as Japan, Korea, and Australia, with vast overseas opportunities. China Securities Co., Ltd. believes that the future of the domestic ready-to-drink tea industry is expected to further enhance the average consumption per capita and stickiness. There is still ample room for growth in the race, mainly based on trends of healthyization and supply chain control of top materials, product category iteration and upgrade, scale and accessibility improvement, overseas expansion advantages in category, and refinement in management reshaping the logic of people, goods, and fields. Leveraging its leading scale advantage and deep industry chain cultivation advantage in China, the company has relatively high comprehensive competitive barriers, thick global momentum-building, and is poised to continue promoting industry development and global deployment.