Rapid Expansion Since IPO
At the time of its IPO in 2021, CU operated 165 stores. Today, the company has grown to 495 branches, celebrating its 7th anniversary by opening its 500th outlet. CU has quickly established itself as one of the fastest-growing players in Mongolia’s convenience store market. This report presents our analysis of its financial performance and outlook.

Business Expansion
Since becoming a publicly listed company in November 2021, Premium Nexus JSC has actively expanded its operations. In 2022, it acquired 12 stores from Circle Chain LLC, followed by strategic integrations in 2024 of several companies, including Chinggis Beer LLC and Stora Central LLC. These transactions have had a material impact on both financial results and the company’s share price.

Market Position
As of the first half of 2025, CU and GS25 together operate 722 convenience stores nationwide, with CU accounting for 64% of the total. CU’s revenue continues to show consistent growth, representing 2.1% of Mongolia’s total retail sector revenue in H1 2025. The company turned profitable in 2024, and profitability has been sustained into 2025.

Mongolia currently has 4,913 people per convenience store, broadly in line with the global average, suggesting a competitive market for new entrants. However, CU’s store penetration is uneven: in Ulaanbaatar, there are 4,281 people per convenience store, while in provincial areas the ratio is 21,667 people per convenience store. This highlights significant room for regional expansion.

Valuation
Our valuation of Premium Nexus JSC is based on the following assumptions:

• Store expansion will continue until the population-per-store ratio reaches the global average, with new outlets distributed proportionally across provinces.
• Average basket size per customer will increase to MNT 17,800 (nominal), supporting efficiency gains and higher revenue.

Under these assumptions, revenue growth is projected at 15%. Using discounted cash flows from net profit, we estimate:

• Equity value: MNT 392.9 billion
• Implied value per share: MNT 352.6

As of June 2025, the market price per share stands at MNT 207.7, indicating that CU stock is undervalued. Comparative analysis with international convenience store chains further supports this conclusion.

IPO Performance
Since its IPO in 2021, Premium Nexus JSC has delivered on key commitments from its prospectus. Targets related to revenue, store count, and total assets have been achieved, while net profit forecasts have been met starting from 2024.

For further details, please refer to the full report published by Unet Securities LLC at the following link.

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