Mixue Group (02097), China's largest bubble tea and drinks company, saw its stock price surge by 6.99% in Monday's morning trading session, reaching a new all-time high. The significant uptick in share value underscores the growing investor confidence in this relatively new entrant to the Hong Kong stock market.

Mixue Group, which went public in Hong Kong earlier this year, has rapidly gained traction among young consumers with its extensive franchise network. The company boasts an impressive 45,000 stores across mainland China and 11 other countries, offering a range of beverages including fruit and tea drinks, coffee, and ice cream, typically priced at around $1. Its playful snowman mascot, known as Snow King, has become an iconic symbol of the brand.

Investors appear to be drawn to Mixue's unique business model and growth potential. While over 99% of its stores are franchised, the company does not primarily rely on franchise fees for revenue, with these fees accounting for only 2.4% of total revenue in the first three quarters of 2024. This suggests a robust and diversified income stream, likely contributing to the stock's attractiveness. As Mixue Group continues to expand its presence and capitalize on the booming bubble tea market, it seems to be increasingly catching the eye of market participants, driving its stock to new heights.