Soochow: MIXUE GROUP (02097) is rated as "buy" with a target price of HK$509.

Soochow released a research report stating that it has initiated coverage of MIXUE GROUP (02097) with a "Buy" rating and a target price of HK$509. The bank forecasted that the Group's net profit attributable to shareholders for the fiscal years 2024 to 2026 would be RMB 4.38 billion, RMB 5.12 billion, and RMB 5.94 billion respectively, corresponding to a P/E ratio of 28, 24, and 21 times. Soochow pointed out that MIXUE GROUP, as a leading player in the affordable instant beverage market, has built a core barrier with its self-built end-to-end supply chain system and IP-based brand marketing to shape brand awareness. In addition, the company deepens its presence in the lower-tier markets through a franchise model, expands its brand internationally, and continues to strengthen its position in the industry. Soochow also noted that the core strengths of MIXUE GROUP lie in its brand power and dominance in the affordable instant beverage market, and its potential in international expansion. Analogous to some strong brands that recently went public in the past year, such as MAO GEPING (01318) and LAOPU GOLD (06181), MIXUE GROUP is expected to enjoy a valuation premium, with a target P/E ratio of 30 times for the fiscal year 2026.