BUSYMING (01768) rose 9% as Soochow Securities highlighted that the snack retail sector is experiencing strong growth, with the company solidifying its leading position.

The firm noted that the industry's market size expanded rapidly from RMB 7.3 billion in 2019 to RMB 129.7 billion in 2024, achieving a compound annual growth rate of 77.8% over five years, outpacing other hard discount retail segments. Furthermore, the industry has developed a highly concentrated duopoly.

Based on GMV calculations, BUSYMING and WanChen Group together accounted for approximately 75.6% of the snack retail market share in 2024, with their combined store count representing 75.2% of the total, indicating significant market consolidation and higher barriers to entry.

China Securities Co., Ltd. believes that 2026 will be a period of improved industry structure, same-store recovery, and rapid profit expansion.

BUSYMING has a strong presence in the vast lower-tier markets, with potential store expansion reaching at least 30,000 to 35,000 locations. By rapidly expanding its footprint, the company has established scale advantages and developed a highly efficient supply chain system.

Well-managed older stores demonstrate robust vitality, with steady same-store sales continuing to show modest growth, reinforcing the company's entrenched leadership position.