Both are Hong Kong-listed Chinese companies with strong growth, but they operate in different sectors—Mixue in beverages and Pop Mart in pop culture toys.

Mixue Group (2097.HK)

Business: Operates over 46,000 stores globally, selling affordable bubble tea, ice cream, and coffee under a franchise model.

Financials: For 2024, revenue rose 22% to 24.8 billion yuan ($3.42 billion USD), with net profit up 40% to 4.5 billion yuan ($613 million USD). Its IPO on March 3, 2025, raised $444 million, and the stock has climbed significantly since debut.

Strengths: Low-price model thrives in cost-conscious markets, with rapid expansion across Asia. High profit margins and strong returns reflect efficiency.

Risks: Recent listing means a short public track record. It’s exposed to commodity price swings (e.g., dairy, sugar) and has shown some volatility.

Pop Mart (9992.HK)

Business: Sells pop toys (e.g., blind boxes) with 39 million registered customers in China (43.9% repeat rate). Overseas revenue is growing, reaching 26%-32% in 2024.

Financials: Profit surged 188% in 2024, with 2025 revenue projected at 20 billion yuan (50% growth). The stock has risen 495% over the past year but trades at a high forward P/E of 32.4.

Strengths: Proven growth, diversified markets, and strong IP-driven brand loyalty. Volatility has remained moderate.

Risks: High valuation risks a correction if growth slows. Dependence on trendy IPs could weaken if popularity fades.

Comparison

Growth: Pop Mart’s 188% profit jump outpaces Mixue’s 40%, but Mixue’s 22% revenue growth is solid for its scale. Pop Mart’s 50% projected 2025 growth slightly leads.

Stability: Mixue’s recession-resistant sector and lower valuation suggest less downside risk. Pop Mart’s premium pricing and trend reliance add volatility.

Valuation: Mixue appears cheaper relative to earnings growth, while Pop Mart’s high P/E signals potential overvaluation.

Risk: Mixue faces commodity and franchise risks; Pop Mart’s IP cyclicality and regulatory pressures are key concerns.

Verdict

Mixue (2097.HK) is the better investment for safety and value. Its essential product category and early-stage listing offer growth potential with less froth, ideal for risk-averse investors.

Pop Mart (9992.HK) excels for aggressive growth, with a strong track record and global reach, suiting those open to higher risk and possible pullbacks.