China Finance Online Co Ltd, July 22 news, today China Renaissance Holdings Ltd. released Missfresh Limited coverage report, giving a buy rating, the target price of $17.59.
China Renaissance Holdings Ltd. said that driven by technological development and changes in consumer behavior, China's community retail market is expected to grow from 34 billion yuan in 2020 to 307 billion yuan in 2025. At present, Missfresh Limited has a 28% market share in China's community retail market and is expected to achieve rapid growth driven by the planned expansion. China Renaissance Holdings Ltd. Research newspaper gave Missfresh Limited a buy rating and set its target price at $17.59.
According to the China Renaissance Holdings Ltd. report, Missfresh Limited has seized the opportunity in China's fast-changing community retail industry. According to iResearch, the community retail industry, which is mainly made up of traditional supermarkets, fresh markets and grocery stores, has a market size of nearly 12 trillion yuan in 2020 and is expected to reach a compound annual growth rate of 5.7 per cent by 2025. Driven by technological developments and changes in consumer behavior, the emergence of an on-demand DMW (distributed mini-warehouse) retail model has completely upended the entire industry. According to iResearch, GMV was only 34 billion yuan in 2020, and the on-demand DMW retail market is expected to grow nearly tenfold to 307 billion yuan by 2025.
In addition, Missfresh Limited has become a leader in this field since choosing the DWM business model in 2015, according to the report. By the end of 2020, Missfresh Limited had 10 national quality control (QC) centers, more than 600 DMWs, and the effective MAU reached 8.7 million. According to the GMV calculation of iResearch, Missfresh Limited occupied 28% of the market share. China Renaissance Holdings Ltd. believes that its scale and technology-driven supply chain management capabilities over the years are its main competitive advantages.
Finally, China Renaissance Holdings Ltd. gave Missfresh Limited a buy rating and set his target price at $17.59. China Renaissance Holdings Ltd. said it valued Missfresh Limited's DMW, smart fresh market and retail cloud business with a target price of $17.59, suggesting Missfresh Limited has 120% upside potential.