China Snack Food: On the rise, more to come

Research evidence excerpt

China Snack Food: On the rise, more to come

10 July 2026

Equity Research Report

China Snack Food EquitiesFood & Staples Retailing

On the rise, more to come China

◆ We increase earnings for snack specialty retailers driven by Kathy Song* (Reg. No. S1700517120001)

faster 1H26 store expansion, while trimming forecasts for Head of A-share Consumer Research HSBC Qianhai Securities Limited

snack manufacturers due to channel restructure kathy.l.h.song@hsbcqh.com.cn

+86 21 5066 2007

◆ We see the upcoming 1H26 results as a key catalyst for both Eric Liu* (Reg. No. S1700525040001)

Analyst, A-share Consumer Research

snack specialty chains HSBC Qianhai Securities Limited

eric.x.c.liu@hsbcqh.com.cn

+86 21 50662053

◆ Prefer Busy Ming and Wanchen on rapid growth outlook;

adjust TPs for all four stocks * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

The snack specialty retailers are accelerating store expansion, with an

improving trend for GMV per store… Shares of Busy Ming and Wanchen have

risen 15% and 11% respectively since end-May, outpacing the CSI300 (-3%) and HSI

(-4%) on the back of accelerated store expansion. While our previous full-year 2026

target was 5,000 new stores for both chains, we are now raising our targets to 7,000

for both Busy Ming and Wanchen. This revision assumes ~4,000 stores opened in

1H26. In addition, we expect an improving trend for GMV per store, driven by efforts

to enhance store quality, supported by category expansion, membership

management, and the ramp-up of new store operations. Driven by this greater

business scale, we raise our 2026-28e earnings estimates by 6-7% for Busy Ming

and 6-8% for Wanchen, with steady margin improvements. We are expecting 90%+