Analysis of Baifu Holdings (01488.HK) Hot Stock Phenomenon: Performance and Challenges Against the Backdrop of the 2025 Catering Industry IPO Wave

Note: There is information discrepancy regarding the name corresponding to 01488.HK; some sources mention that this code corresponds to Hongxing Group Holdings Limited, but this analysis focuses on the relevant business and performance of Baifu Holdings (01488.HK) based on recent market dynamics and company announcements [1].

Baifu Holdings (01488.HK) became a hot stock in the Hong Kong stock market in 2025, mainly driven by the ‘IPO wave’ in the catering industry [1][5][6]. However, the company’s stock price performance contrasts with its hot stock status, dropping 31.58% year-to-date [1]. Key driving factors include:

1. Yujian Xiaomian IPO Progress
   : Yujian Xiaomian, an investee company, has passed the Hong Kong Stock Exchange’s listing hearing and plans to sprint for the ‘first Chinese-style noodle restaurant stock’ [2]. In August 2025, Baifu Holdings sold a 1.71% equity stake in Yujian Xiaomian, cashing out 48 million yuan, which is expected to bring a pre-tax gain of about 42 million yuan [3].
2. Backdrop of Catering Industry IPO Wave
   : In 2025, multiple catering enterprises such as Mixue Bingcheng, Guming, and Hushang Ayi were listed on the Hong Kong Stock Exchange, making Hong Kong stocks a popular listing destination for catering companies [5][6]. As a multi-brand catering investment platform, Baifu Holdings has attracted capital attention.
3. Company Strategic Layout
   : In November 2025, the company entered into a partnership agreement to establish Shenzhen Shendianbao, investing 50 million yuan to focus on Chinese catering project investments, further deepening its layout in the catering track [4].
4. Financial Status
   : The company reported a loss of 32.86 million yuan in the first half of 2025, which narrowed compared to the same period in 2024, but it is still in a state of continuous loss [1].

1. Contrast Between Hot Stock Status and Stock Price Performance
   : Baifu Holdings’ hot stock status mainly stems from industry trends and progress of investee targets, rather than improvements in its own fundamentals, reflecting that market sentiment premium for the catering track is higher than the company’s individual performance [1].
2. Investment Monetization and Strategic Re-layout
   : The company realized cash flow by selling its stake in Yujian Xiaomian, while establishing a new fund to lay out catering projects, indicating its “exit-reinvestment” cycle strategy in the catering investment field [3][4].
3. Industry Dividends and Individual Challenges
   : The 2025 catering industry IPO wave brought attention to Baifu Holdings, but the company’s ongoing loss-making financial situation remains a core challenge, and it needs to rely on successful exits of investee targets to realize gains [1][5].

• Weak stock price performance: Despite making it to the hot list, the stock price has dropped 31.58% year-to-date, with risks of disconnect between market sentiment and stock price [1];
• Sustained losses: The company’s financial situation has not turned profitable, and the model relying on investment income has uncertainties [1];
• Investee target risks: The IPO process and subsequent performance of Yujian Xiaomian will directly affect the company’s gains, with risks of post-listing stock price fluctuations [2].

• Catering industry IPO wave dividends: Industry trends bring more investment and exit opportunities, and the newly established Shenzhen Shendianbao can capture high-quality projects in the track [4][6];
• Narrowing losses: Financial situation has improved; if subsequent investment gains are continuously realized, it is expected to further optimize financial performance [1].

Baifu Holdings (01488.HK) became a hot stock in Hong Kong stocks against the backdrop of the 2025 catering industry IPO wave, but its stock price performance contrasts with industry enthusiasm. The company gained attention through the IPO process of its investee targets, while adopting an “exit-reinvestment” strategy to lay out the catering track. Although financial losses have narrowed, sustained profitability remains a core challenge. Investors need to pay attention to the IPO progress of investee targets and the realization of subsequent investment gains by the company, while being alert to the risk of disconnect between stock price and fundamentals.