IPO Details

• Purpose of IPO
  Anjoy Foods plans to raise HKD 2.64 billion by offering approximately 40 million H-shares at HKD 66 each. Use of proceeds:

  • 35% for expanding sales and distribution networks,

  • 35% for enhancing procurement and supply chain,

  • 15% for digital transformation,

  • 5% for new product development,

  • 10% for general working capital.
    This is clearly a growth-driven IPO, aimed at scaling operations and boosting competitiveness.

• Oversubscription
  The Hong Kong public tranche was oversubscribed 92 times, triggering a reallocation from the international portion. Over 238,000 public applications were received, making it one of the most subscribed IPOs in the F&B space this year.

• Offer Size:
  39.99 million shares offered globally, with 90% to institutional investors and 10% to the public.

• Proceeds:
  Approximately HKD 2.64 billion at a price of HKD 66 per share.

• Outstanding Shares:
  Post-listing share count is not fully disclosed yet, but the float is moderate.

• First-Day Performance Outlook:
  Given the significant oversubscription, limited float, and cornerstone interest, the IPO is likely to perform strongly on debut.

• Cornerstone Investors:
  Six investors including Shanghai Jinglin, Huatai Capital, Hosen Capital, QRT, FCP Domains, and NonaVerse subscribed to US$90 million (~26.76% of global offer or about 10.7 million shares).

• Retail Demand:
  Over 92x oversubscription and high margin financing levels suggest extremely high demand.

• Joint Sponsors: Goldman Sachs (Asia) and CICC

• Underwriters: Ping An Securities, Huatai Financial, China Galaxy, UOB Kay Hian, GF Securities, CMB International, CCBI, Industrial Securities.

• First-Day Outlook:
  The presence of top-tier global sponsors, along with a large syndicate of underwriters, enhances credibility and indicates a strong market debut.

Business Model and Industry

• China’s largest frozen food company by revenue (2024) with:

  • 6.6% overall frozen food market share,

  • 13.8% in flavored/processed frozen foods,

  • 5% in prepared dishes.

• Operates 12 production plants in China and 1 overseas.

Financial Health

• FY2024 Revenue: RMB 15.1 billion, up 7.7% from FY2023.

• Q1 2025 Revenue: Slight decline of 4.1% YoY.

• Gross Margin: 23.3%, trailing peers like Haitian (36%).

Market Position

• Market leader in China’s branded frozen food segment.

• Strong cold-chain logistics network and diversified product base give it a clear competitive edge.

Management Team

• Founders and key executives hold substantial stakes and are not selling in the IPO, indicating long-term alignment.

a) Sector Trends

• China’s frozen food market is expanding due to changing dietary habits and improved logistics.

• Demand for ready-to-cook meals is rising, driven by urbanization and dual-income households.

b) IPO Timing

• Subscription: June 25–30

• Listing: July 4, 2025

• Timing is favorable, especially amid recovering food sector sentiment.

c) Economic Environment

• China’s consumer sector is rebounding, albeit unevenly. Food remains a resilient category with relatively inelastic demand.

d) Recent News

• The company’s A-shares on the Shanghai exchange are priced at RMB 83.62, creating a ~21% discount to the HK IPO price. This valuation arbitrage could drive investor interest in the H-shares.

e) Market Sentiment

• Strong public interest and anchor support reflect positive sentiment.

• Global food IPOs are performing well amid macro uncertainty, reinforcing defensive positioning.

f) Prospectus Summary

• Outlines expansion plans, cold-chain infrastructure buildout, digital transformation, and product innovation.

g) Risk Factors

• Margin compression due to rising input costs,

• Intense competition from domestic and foreign brands,

• Consumer demand fluctuations in the premium segment.

h) Growth Strategy

• Expand globally, integrate acquisitions, enhance brand presence, and diversify products.

• Recent acquisition: Ding Wei Tai, a seafood brand to enhance product mix.

• Ownership Structure:
  Promoters are expected to retain 25%+ post-IPO. Standard 12-month lock-in periods apply for major shareholders.

a) Financial Metrics Table

*Based on recent filings and IPO disclosures.

b) Other IPOs This Period

• No direct frozen-food peers listing at the same time, making Anjoy the primary consumer/F&B focus for July 2025.

c) 10-Day Performance of Sector Peers

• Food & beverage stocks on HKEX have gained 2–5% over the past 10 days.

• Anjoy’s oversubscription suggests it will outperform this average on debut.

• Analysts label Anjoy as a “strong buy” given its market leadership, growth profile, and IPO discount vs. Shanghai A-shares.

• Target Price: Estimated HKD 80–85 (implying ~20–30% upside).

• Public allotment results expected July 2 or 3.

• Given the 92x oversubscription, public allotment will be minimal, further boosting listing-day scarcity.

• IPO Price: HKD 66

• Estimated First-Day Trading Range: HKD 75–85

• Debut Performance Outlook:
  Likely to open strongly, with +14% to +29% gain based on valuation discount and oversubscription levels.

✅ Subscribe for strong listing-day gains and long-term consumer sector exposure.
⚠️ Watch for margin recovery in future quarters.

Prospectus Access

The prospectus will be available on the HKEXnews website and on Anjoy’s corporate investor page after approval.

Conclusion
Anjoy Foods is a rare mix of scale, consumer appeal, and sector leadership. Backed by strong institutional and retail demand, the IPO is expected to deliver a robust listing debut and attractive long-term upside for investors confident in China’s food consumption trends.

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