(Economic Watch) What is the "business experience" behind the IPO of "new domestic products"?

　　China News Service, Beijing, September 28 (Reporter Chen Kangliang) China's capital market seems to be setting off a new wave of consumption of "new domestic products" listing, and many popular new brands have accelerated their IPO (initial public offering) process. .

The latest example comes from Michelle Ice City.

　　Recently, the information disclosed by the China Securities Regulatory Commission shows that Michelle Bingcheng's A-share listing application has been accepted.

Michelle Bingcheng officially pre-disclosed the prospectus and plans to land on the main board of the Shenzhen Stock Exchange.

　　Michelle Bingcheng is a milk tea brand founded in 1997. It is favored by many Chinese young people because of its business philosophy of "high quality and affordable price" and its lively and interesting publicity strategy. The brainwashing melody of the brand's theme song was once popular on the Internet.

　　The prospectus shows that from 2019 to 2021, the operating income of Michelle Ice City will be about 2.566 billion yuan (RMB, the same below), 4.68 billion yuan, and 10.351 billion yuan respectively; the corresponding net profit attributable to shareholders of the parent company is about It is 445 million yuan, 632 million yuan, and 1.91 billion yuan.

Behind the dazzling performance is the largest number of stores in the industry.

As of March 2022, Michelle Bingcheng has more than 20,000 stores in China, 317 stores in Indonesia and 249 stores in Vietnam.

　　In this IPO, Michelle Bingcheng plans to publicly issue no more than 40.01 million RMB ordinary shares, and plans to raise funds of about 6.496 billion yuan.

Among them, most of the raised funds are intended to be invested in food processing, industrial parks and other production and construction projects and used to supplement working capital.

　　Ding Zhechuan, an analyst at China Merchants Securities, said that he is optimistic that Michelle Ice City will drive revenue growth and improve profitability due to store expansion, supply chain expansion, and scale advantages.

　　But there are also analysts suggesting risks.

Zheshang Securities analyst Yang Ji believes that if the industry growth slows down in the future and the number of market participants continues to increase, industry competition will further intensify.

In the future, if the company cannot continue to maintain its leading position in the industry and differentiated competitive advantages, the company's market share and operating performance will be affected to a certain extent.

In addition, judging from the current situation, China's domestic new crown pneumonia epidemic has gradually been effectively controlled, but it has not been completely recovered, and uncertain factors still exist.

　　In fact, in addition to Michelle Bingcheng, since this year, Shanghai Beauty Group, the parent company of cosmetics Han Shu, Wei Meizi, the parent company of toothpaste brand Shuke, Yang Guofu Mala Tang, Hefu Lomian, Qixintian, Hometown Chicken, Many companies such as Canglang Ancient Tea and Bama Tea Industry are promoting listing matters, covering various consumer segments such as cosmetics, oral hygiene, Chinese fast food, and tea.

　　Not only is there a large number, but the "age" of consumer brands that hit IPOs this year is also generally young, and most of them were established around 2000.

According to public information, the first store of Hefu Lao Mee was officially opened in 2013.

　　In an interview with a reporter from China News Agency, Dong Dengxin, director of the Institute of Finance and Securities at Wuhan University of Science and Technology, said that in recent years, the management level of Chinese enterprises has gradually improved, and the awareness and ability of enterprises to use the capital market to improve their operations have become increasingly mature.

Often relatively "young" companies are more open in choosing IPOs. When the company has a certain market size or has formed a certain barrier and influence, if it can be successfully listed, it can not only verify the health of the company, but also quickly open up the relationship with the company. distance from other competitors.

　　Dong Dengxin further pointed out that there are many listing cases of consumer companies, especially catering companies, this year, which may also be related to the impact of the epidemic.

Under the impact of the epidemic, various catering companies with healthy cash flow before may face increased cash flow pressure, and urgently need to supplement working capital, and there is a need to go public.

　　"But it must be seen that the current threshold for listing on A-shares is not low." Dong Dengxin said that whether catering companies can finally be listed and how well they perform after listing depends on the operation of the company itself.

　　Shen Meng, chief strategist of Guangke Consulting, also said that listing is a means and opportunity for better development. If you only see that listing can raise funds and make finances more comfortable, but cannot adapt to a sound governance structure and market competition, then even if you go public, you will not be able to. Lack of the possibility of long-term healthy development; after all, investors focus on stable profitability and ample room for growth.

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