BUSYMING (HKEX: 01768) saw its share price surge more than 11% during the trading session. As of writing, the stock is up 7.38% to HK$334.6, with a turnover of HK$47.9 million.
In terms of recent developments, last month, both the BUSYMING Group and the Wan Chen Group issued statements expressing their stance against disorderly internal competition and unfair practices within the industry, advocating for the rational development of the leisure snack retail chain sector. Furthermore, according to a research report from China Securities, both Wan Chen and BUSYMING maintained a pace of opening new stores in the thousands during June.
It is also noteworthy that BUSYMING was officially included in the Hong Kong Stock Connect Southbound trading list on June 8th, marking a significant milestone since its listing. This inclusion opens the stock to mainland investors, with potential increases in demand from passive index fund allocations and heightened attention from active funds. This development is expected to continuously improve liquidity and drive a valuation re-rating.
A securities firm analysis highlights that the company's future growth drivers are clear. The first driver is store network expansion, with projections indicating the number of stores could increase to 35,000 by 2028. This expansion involves deepening penetration in lower-tier county markets while steadily advancing into higher-tier cities. The second driver is improving single-store efficiency through optimizing product mix and implementing digital, precise inventory replenishment to consistently enhance sales velocity. The third driver involves supply chain and product upgrades, specifically by increasing the proportion of customized products to strengthen differentiated competitive advantages.
The company and the Wan Chen Group have established differentiated competitive strategies centered on "scale priority" and "profitability priority," respectively. Their regional footprints are complementary, suggesting the industry is entering a phase of healthy development.