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Investing.com - Macquarie initiated coverage on Mixue Group (HK:2097) with an Underperform rating and a price target of HK$279.00 on Friday.
The research firm noted that Mixue Group is the world’s largest freshly-made beverage company with over 53,000 stores, 91% of which are located in China. The company operates two brands: "Mixue Bingcheng" for tea drinks and "Lucky Cup" for coffee drinks.
Macquarie highlighted that Mixue focuses primarily on lower-tier Chinese cities, with more than 57% of its stores situated in tier-3 or lower cities. The firm observed that the brand is facing increasing market saturation in its home market.
The research firm pointed out that Mixue is shifting its strategy toward store efficiency rather than scale expansion, which Macquarie expects will result in more moderate store network growth going forward.
Macquarie also expressed concern about accelerating competitor penetration in lower-tier cities during the first half of 2025, and warned that the eventual phase-out of food delivery subsidies could significantly impact Mixue’s same-store sales growth, potentially leading to muted sales growth in 2026.
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