[GTJA Haitong Liu Yuenan] Ming Ming Hen Mang: Based on Scale and Efficiency, Leading Snack Discount Retailer's Profit Expansion

English summary

Investment advice: Initiate coverage with "Overweight" rating. We forecast the company's adjusted net profit for 2026-2028 to be 3.980/5.456/6.498 billion CNY, with growth rates of 48%/37%/19%. Combining PE and DCF valuations, we give the company a target price of HKD 517 and an "Overweight" rating (at 1 HKD = 0.87 CNY). Leading dual-brand snack discount retailer, with scale and efficiency building barriers. Ming Ming Hen Mang is a leading snack discount retailer in China, owning two core brands: "Siliang Henmang" and "Zhao Yiming Snacks." Its core competitive advantages include: ①Scale: By the end of 2025, Ming Ming Hen Mang had 21,948 stores, with GMV exceeding 90 billion CNY in 2025, holding a 42.6% market share in China's snack discount retail market. ②Supply chain: The vast majority of the company's products are directly supplied by manufacturers, while shortening supplier payment cycles, with average prices about 25% cheaper than similar products in offline supermarket channels; and through an efficient product selection system and consumer insight capabilities, it supports high-frequency product refreshes and customization.…