BUSYMING

$BUSYMING(01768.HK)’s IPO arrives as Hong Kong’s primary market shows selective recovery. Beyond the debut price action, investors may want to focus on post-listing liquidity, margin sustainability, and whether growth assumptions translate into consistent earnings.

In the current environment, IPO performance is often shaped less by the listing day and more by execution in the first few reporting cycles.

Warehouse turns in just 5–7 days, and full-case picking makes up 95%. $BUSYMING(01768.HK) — how lean can its supply chain run?

With 5–7 day warehouse turns and 95% full-case picking, the company's savings come from three levers: short chain, high efficiency, and minimal waste.Every link is engineered to cut costs, pushing savings to the limit.

First, the 'short-chain' model eliminates losses and fees in the middle.In the traditional snacks supply chain, goods move factory → distributor DC → store, adding steps, in-transit/warehouse shrink, and extra fees.The company runs factory → central DC → store, cutting out middlemen, reducing handling losses, and materially lowering transport costs. All stores sit within 300 km of the DC, enabling 24-hour delivery and minimizing dwell time, which further reduces inventory carrying costs.

Second, full-case picking boosts efficiency and cuts waste.Its DCs primarily serve franchised stores with standardized bulk orders; unlike e-comm that breaks cases for consumers, about 95% is full-case picking.

This way, the DC avoids time-consuming break-pack and sorting, reducing labor costs.It also prevents leftover SKUs and near-expiry stock, accelerating turns so goods sell through in 5–7 days.Capital isn't tied up in inventory, effectively lowering carrying costs.

Finally, digitization ensures every dollar is spent where it matters.A dedicated WMS auto-assigns slots by sell-through, positions hot items for easy picks, and optimizes pick paths so workers don't wander—doubling efficiency.

Route planning is also system-driven to maximize truck load factors, pushing per-item delivery costs to among the lowest in the industry.The system monitors each store's inventory in real time to avoid stockouts or overstock; with no waste from sourcing to warehousing to delivery, the company can truly save, underpinning its low-price strategy.

On its HK debut today, $BUSYMING(01768.HK) surged over 88%. The deal was ~1,900x oversubscribed, with Tencent and Temasek among the cornerstone backers, igniting the market for the first bulk-snack retailer.

It, too, is a middleman capturing the spread between suppliers and franchisees, so why does it lead the pack and command such investor interest? Dolphin Research previously argued the edge comes from taking 'low price' and 'efficiency' to the extreme while precisely targeting a whitespace.

First, it cut out the long chain of intermediaries. Traditional snacks pass through multiple layers of distributors and sub-distributors, each adding markups that bloat end prices. By sourcing directly from major upstream brands via large-scale centralized procurement, it secures very low purchase costs and sells to franchisees at prices 20%–30% below traditional channels, effectively passing middleman margins to consumers and franchisees to outcompete other brokers.

Second, its operating efficiency is hard for peers to match. While other retail formats turn inventory over in several dozen days, this model runs at just 11 days, speeding cash and goods flow, reducing near-expiry risk, and adapting quickly to trending snacks. Powered by digital systems and AI-driven replenishment that calculates what to restock and when, it saves time and cost from sourcing through delivery, far outperforming traditional middlemen.

Lastly, it nailed the whitespace in lower-tier markets. Consumers in tier-3/4 cities and towns are most price-sensitive, yet efficient snack retail channels were lacking. By opening near residential communities and putting affordable snacks within 300 meters, it filled the demand gap.

Franchise-led expansion has been rapid, with store count rising from under 2,000 to 20,000 in two years. Greater scale strengthens bargaining power with suppliers, driving lower purchase prices and reinforcing a flywheel of 'low price → more stores → lower purchase price → even lower price'. Over time, this has left peers behind and cemented its No.1 position.

All the best, everyone. However your portfolio is.

Another super cycle is here!

Becareful of meme stocks, whenever I see it I tremble on fear.

I think previous metal has more upside!