MIXUE Group: Results Beat Undermined By Weak Guidance

The Value PendulumInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryI initiate coverage on MIXUE Group with a "Hold" rating, considering the divergence in its performance and prospects.MXUBY's aggressive footprint expansion and positive fixed-cost leverage effects led to a 1.9% FY2025 earnings outperformance. It still has a long runway in China with regard to township penetration.But the company's management is guiding for lower profitability in FY2026, considering product- and employee-related investments.Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More » Rozita Turut/iStock Editorial via Getty Images I've initiated coverage on MIXUE Group (MXUBY) (2097.HK) with a "Hold" rating. The above-consensus FY25 financials and underwhelming FY2026 prospects support my "Neutral" stance. Corporate Overview MXUBY is described by SA News as "the world's largest restaurant chain" selling "value‑oriented drinks."This article was written byThe Value Pendulum13.35K FollowersFollowThe Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.