CLSA: Initiates BUSYMING (01768) with "Outperform" Rating, Target Price HK$492

CLSA issued a research report initiating BUSYMING (01768) with an "Outperform" rating and a target price of HK$492; it also initiated Fujian Wanchen Food Group (300972.SZ) with an "Outperform" rating and a target price of RMB231, believing both valuations are attractive. The bank noted that China's value snack retail has gained widespread popularity in recent years and is expected to retain substantial 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 roughly 70% growth room from current levels. Value snack retail offers cost-effective products and a better shopping experience, aligning with current consumers' prudent spending mindset. The market has now formed a near-duopoly structure; based on 2025 GMV, BUSYMING and Fujian Wanchen Food Group, which operates snack brands such as Haoxianglai, hold market shares of approximately 43% and 34% respectively. Both possess advantages in scale, procurement, logistics and digitalization, and are expected to continue benefiting from industry growth. CLSA believes value snack retailers should theoretically command a premium over traditional offline retailers, and considers both valuations attractive.