HK Stock Market Move | MIXUE GROUP (02097) rose by more than 8% to continue to hit a new high, doubling compared to the IPO price, with a total market value exceeding HK$160 billion.

MIXUE GROUP (02097) rose by over 8%, reaching a high of 430 Hong Kong dollars during trading, hitting a new high since its listing and more than doubling its IPO price of 202.5 Hong Kong dollars, with a total market value surpassing 160 billion Hong Kong dollars. As of the time of this report, it has risen by 8.49%, reaching 426.8 Hong Kong dollars with a trading volume of 8.04 billion Hong Kong dollars. On the fundamental side, Soochow believes that the core value of MIXUE GROUP lies not in the "tea drink track," but in the "dominance of Mixue within the track." Mixue has over 40,000 stores in China, while other tea drink brands have basically between 3,000 and 9,000 stores, creating a significant gap with Mixue. "Being able to open a store" means that franchisees can make money with this brand. Based on this foundation, Mixue has opened an average of 7,000 stores per year in the past two years, which is also a manifestation of the brand's dominance. If the brand is not strong enough, it cannot continue to open stores, and reaching this level of store count indicates a strong brand dominance, which may lead to a higher valuation. In addition, the popularity of the "Snow King" IP is far ahead of other ready-to-drink beverages in the current market, with discussions of the #MixueIceCity topic on Douyin reaching 43.5 billion times. Soochow believes that MIXUE GROUP, as a leader in affordable ready-to-drink beverages, has built core barriers through a self-built end-to-end supply chain system and IP brand marketing to shape brand mentality. The company deepens its presence in the lower-tier market through franchising, promotes the brand going global, and continues to consolidate its industry position. The bank believes that MIXUE GROUP's core strengths are its brand potential and dominance in the affordable ready-to-drink beverage market, and it is worth looking forward to its international expansion.