Huayuan Securities: MIXUE GROUP (02097) acquires 53% equity of Fulu Home, maintains "buy" rating.

Huayuan Securities released a research report stating that they are optimistic about the domestic and overseas market expansion of MIXUE GROUP (02097), and expect the company's market share to continue to increase. They maintain a "buy" rating. The firm expects the company's net profit attributable to shareholders to be 5.425 billion yuan, 6.586 billion yuan, and 7.67 billion yuan in 2025, 2026, and 2027 respectively, with year-on-year growth rates of 22.28%, 21.40%, and 16.46% respectively. Mixue focuses on the current beverage industry, with multiple competitive advantages in customer base, channels, supply chain, and marketing, positioning themselves accurately in the affordable tea drink market segment. According to MIXUE GROUP's announcement, MIXUE GROUP intends to invest 286 million yuan to subscribe for 51% equity of Fulujia; acquire 2% equity from the shareholder Zhao Jie for 11.2 million yuan; after the completion of the transaction, Fulujia will become a non-wholly-owned subsidiary of MIXUE GROUP, and its financial performance will be consolidated. After the acquisition, MIXUE GROUP, Tian Haixia, Mailangtongzhou, Zhao Jie, and Jia Rongrong will hold 53.0%, 29.4%, 10.0%, 5.4%, and 2.2% equity of the target company respectively. The firm pointed out that after the acquisition is completed, Mixue will further expand its brand matrix. The beer industry has a huge market size and consumer base. With consumers' increasing demand for high-quality and diversified products, there is potential to tap into the craft beer market. MIXUE GROUP originally focused on affordable tea drinks and coffee, and after the acquisition, will expand its products from current tea drinks and coffee to craft beer while maintaining a high-quality and affordable product positioning. It is expected that MIXUE GROUP will further expand the brand presence in the craft beer market leveraging its existing supply chain advantages and franchisee strengths.