CMSC: First Capital (01768) "strongly recommended" rating, expecting market share to increase.

CMSC released a research report, stating that it first gave a "strongly recommended" rating to (01768), with the company's adjusted net profit expected to reach 2.52 billion, 3.39 billion, and 4.37 billion RMB in 2025, 2026, and 2027 respectively. The bank pointed out that as the domestic leading bulk snack retailer, the company owns two major brands, including Snack Very busy and Zhao Yiming Snack. As of November 30, 2025, the company has approximately 21,000 stores, with GMV, revenue, and adjusted net profit in the first three quarters of last year reaching 66.1 billion, 46.4 billion, and 1.81 billion RMB, representing a growth of 73%, 75%, and 241%. The bank believes that the efficiency of the bulk snack channel is significantly ahead, and expects the company to continue to increase its penetration rate and maintain a rapid pace of store opening. Currently, the industry share is accelerating towards the leading companies, with the company having a high-quality team and leading in various aspects such as supply chain, warehousing, distribution, expansion, and branding. It is expected that the strong will become stronger under the industry scale effect, and the company's market share will further increase, releasing profits gradually.