HK Stock Market Move | BUSYMING (01768) rises over 6%; CLSA expects significant growth room remaining in China's value snack market, and the company's valuation is attractive.

BUSYMING (01768) rose over 6%, up 6.07% as of press time to HK$325, with turnover of HK$102 million. CLSA released a research report stating that China's value snack market has gained widespread popularity in recent years and is expected to still have significant growth room. According to industry surveys, the medium- to long-term potential upper limit for the number of value snack stores nationwide is approximately 135,000 to 140,000, leaving room for about 70% growth from current levels. CLSA believes that value snack retailers should theoretically command a premium over traditional offline retailers, and has initiated coverage on BUSYMING with an "Outperform" rating and a target price of HK$492; it also initiated coverage on Fujian Wanchen Food Group with an "Outperform" rating and a target price of RMB231, believing both valuations are attractive. CLSA pointed out that value snack retailers offer cost-effective products and a better shopping experience, aligning with current consumers' cautious spending mindset. The market has now formed a near-duopoly structure, with BUSYMING and Fujian Wanchen Food Group, which operates snack brands such as Haoxianglai, holding market shares of approximately 43% and 34% respectively based on 2025 GMV. Both possess advantages in scale, procurement, logistics, and digitalization, and are expected to continue benefiting from industry growth.