From aquaculture to chain catering, Chinese fast food bibcock develops rapidly. The company was founded in 2003, the first "Feixi Old Hen Fast Food Restaurant" opened in Hefei, and the brand was officially upgraded to "fellow-villager Chicken" in 2012. since then, the company's direct stores have expanded rapidly, and the dining scene has expanded from lunch and dinner to three meals a day, covering consumers' all-weather demand for fast food. In 2017, the company started nationalization, stationed in Nanjing and Wuhan, and accelerated its expansion outside the province from 2019. By the end of 2021, the company had 1073 stores in eight provinces and cities across the country.

With the deep ploughing of Anhui Province, the nationalization expansion continues to advance. The company's main products are Chinese rice fast food based on chicken products, the business model is mainly direct marketing, and began to try to join the model in 2020. 70% of the franchisees are fellow-townsman chicken former entrepreneurial employees with rich operation experience, at the same time, it also reflects that employees are full of confidence in the future development of the company. In terms of operating area, the company has been ploughing Anhui for nearly 20 years and currently has 673 stores in Anhui province. after the rapid nationalization in 2019, the proportion of stores in the province has dropped to 62.72%, which is lower than that of comparable peers. The proposed IPO fund-raising is intended to promote the nationalization process, mainly for the construction of the central kitchen in East China, the improvement of the national store layout and information construction.

Chinese fast food chain has a broad space, and the bibcock after the epidemic ushered in an opportunity for expansion. The improvement of Chinese residents' consumption ability and the change of eating habits have promoted the expansion of the consumption scale of chain Chinese fast food. At the same time, China's supportive policies and regulatory policies jointly provide fertile ground for the high-quality development of the catering industry. In recent years, the scale of chain catering in China has maintained rapid growth, in which the proportion of fast food chains continues to increase, and there is a broad space for the development of fast food industry. Chinese style occupies a dominant position in the fast food market, and the scale of the Chinese fast food industry is expected to exceed 1.5 trillion in 2025. In contrast, the concentration of Western-style fast food is higher, while that of Chinese-style fast food has more room for improvement. Chinese fast food is mainly regional distribution, nationalization is still in its infancy, fellow-townsman chicken taste universal is more conducive to nationalization. In addition, the epidemic accelerated the survival of the fittest in the catering industry, chain catering has a strong anti-risk ability, and ushered in opportunities for expansion and development after the epidemic.

The integration of the industrial chain helps the rise of the leader, and the foundation of standardization expansion is solid. First of all, the company's products have a national basis, fellow-townsman chicken product matrix is rich, covering a wide range of dining needs, chicken soup and other home-cooked dishes have been recognized by market consumers, the company attaches great importance to food research and development, the nationalization process is expected to accelerate. Second, the company has formed an integrated whole-industry chain management model of "hen breeding + food processing + cold chain logistics + chain operation". It has its own upstream poultry farming, which effectively ensures the stable supply of hen raw materials for the company's core products, and the central kitchen model ensures quality. reduce costs and increase efficiency for stores. Cold chain logistics strategic cooperation, the whole process monitoring standards are high, food safety is guaranteed. Third, the company's brand concept of safety and health is deeply rooted in the hearts of the people, and a standardized chain operation model that can be replicated quickly has been established. in the future, it will be dominated by direct stores in first-tier cities, and standardization expansion is expected.

Investment suggestion: we believe that the future performance improvement space of the company mainly comes from: ①, as a leading enterprise, will fully benefit from the expansion of Chinese fast food chain industry in the future; ② has obvious advantages in brand, product matrix, industrial chain integration and the number of stores, and will fully benefit from the increase of industry concentration in the future. ③ dishes have the characteristics of national expansion, products and services, food safety control, location and other standardized expansion path is relatively clear, optimistic about the future store expansion potential, it is recommended to pay attention to.

Risk hints: the risk of lower-than-expected store expansion, the risk of food safety problems, the risk of recurrent outbreaks, and the risk of diseases in poultry farming.