Daiwa Lowers MIXUE GROUP (02097.HK) Rating to Hold and Reduces Price Target to $427
Downgrade and Valuation Changes: Daiwa downgraded MIXUE GROUP from Outperform to Hold, reducing its target price from $535 to $427 and lowering the projected 2026 PE ratio from 28x to 22x due to concerns over future earnings growth and the validation of its overseas market expansion.
Sales Growth and Market Expectations: Despite a resilient same-store sales growth post-subsidy wave, Daiwa believes the market may have overly high expectations for MIXUE GROUP's second growth engine, which is yet to be proven.
Market Positioning and Innovation Limitations: Daiwa noted that MIXUE GROUP's mass market positioning restricts its product innovation and pricing flexibility compared to mid-tier competitors like GUMING and Luckin Coffee.
Business Model Comparison: The report likened MIXUE GROUP's business model and long-term advantages to TINGYI, highlighting its strong franchisee network and supply chain benefits, particularly in lower-tier cities.
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<Full-day Summary> HSI Gains 699 Points; HSTI Rises 145 Points; CHINAHONGQIAO Surges Over 7%; CHINAHONGQIAO, XINYI GLASS, PETROCHINA, CNOOC, SINOPEC CORP Reach Record Highs; Market Turnover Increases
Market Performance: The Hang Seng Index (HSI) rose by 699 points (2.6%) to close at 27,826, with significant gains also seen in the HSTI and HSCEI, reflecting a strong market turnover of $361.52 billion.
Top Gainers: Notable heavyweights like Tencent, Xiaomi, and Alibaba saw increases of 2.3%, 2.1%, and 2.1% respectively, while Chinahongqiao and Pop Mart led the HSI & HSCEI constituents with gains of 7.3% and 7.0%.
Short Selling Activity: High short selling ratios were observed across various stocks, with Ping An and BYD Company showing significant short selling amounts, indicating investor caution despite overall market gains.
Noteworthy Movements: Stocks like Unisound and Chalco experienced dramatic price changes, with Unisound surging by 73.8% while XXF and Adicon Holdings faced declines of 14.5% and 12.0% respectively.
HSI Closes with a 16-Point Gain; Rally in Developers and Commodities; LAOPU GOLD Generates Buzz
Market Performance: The HSI closed slightly up by 16 points at 26,765, while the HSCEI and HSTECH saw declines of 0.15% and 1.2%, respectively, with a total market turnover of HKD261.699 billion.
Developer Stocks Surge: Hong Kong-listed property developers experienced significant gains, with SHK PPT, SINO LAND, and CK ASSET rising between 3% to 4.5%, while NEW WORLD DEV jumped 4.4%.
Gold and Silver Stocks Rally: Gold and silver stocks saw substantial increases, with CHI SILVER GP soaring 19.1% and CHINAGOLDINTL rising 8.1%, reflecting strong demand in the sector.
Tech Stock Movements: Major tech stocks had mixed results, with TENCENT gaining 0.8% and BABA-W dropping nearly 2%, while other tech companies like KUAISHOU-W and BIDU-SW fell over 3%.
