Lyon: The first round is very busy (01768) “Outperform the Market” rating target price HK$492

The Zhitong Finance App learned that Lyon released a research report saying that for the first time, it gave Ming Ming a very busy (01768) “outperform the market” rating, with a target price of HK$492; at the same time, it first gave Wan Chen Group (300972.SZ) a “outperform the market” rating and a target price of RMB 231 yuan, believing that both valuations are attractive.

According to the bank, mass-selling snacks in China has been very popular in recent years, and it is expected that there is still plenty of room for growth. According to industry surveys, the maximum potential number of mass selling snack stores nationwide is about 135,000 to 140,000, and there is still room for growth of about 70% compared to the current level.

Mass-selling snacks provides cost-effective products and a better shopping experience, in line with current consumers' view of prudent consumption. Currently, the market has formed an almost double oligopoly pattern. According to the 2025 GMV, the market share of Wanchen Group, which is busy and wants to run snack brands, is about 43% and 34% respectively. Both have advantages in scale, procurement, logistics and digitalization, and are expected to continue to benefit from industry growth.

Lyon believes that mass snack retailers should theoretically enjoy a premium over traditional offline retailers, and believes that both valuations are attractive.