01768 Should I Buy

The analyst rating of "Strongly Recommend" for BUSYMING (01768.HK) by China Merchants Securities (CMS) is based on several key factors: 1. Strong Profit Projections: CMS projects the company's adjusted net profits to grow significantly over the next few years, reaching RMB2.52 billion in 2025, RMB3.39 billion in 2026, and RMB4.37 billion in 2027. 2. Efficient Wholesale Snack Channel: The report highlights that the wholesale snack channel is performing exceptionally well, indicating a strong operational efficiency that is expected to benefit the company. 3. Increasing Market Penetration and Store Openings: The company is anticipated to continue increasing its market penetration and maintain a rapid pace of store openings, which is crucial for growth. 4. Concentration of Industry Share: The report notes that the industry is rapidly concentrating towards leading companies, suggesting that BUSYMING is well-positioned to capture a larger market share. 5. High-Quality Team and Leadership: The company's team is described as high quality, with strong leadership in critical areas such as supply chain management, warehouse distribution, expansion, and branding. 6. Economies of Scale: The report suggests that as the industry benefits from economies of scale, stronger companies like BUSYMING are expected to become even stronger, which will further enhance its market share and profitability. These factors collectively contribute to the strong recommendation from the analyst.