Added to YB: 2025-05-08
Pitch date: 2025-05-07
CHA [bullish]
Chagee Holdings Limited
-55.13%
current return
Author Info
Company Info
Chagee Holdings Limited, through its subsidiaries, owns, operates, and franchises teahouses under the CHAGEE brand name in the People’s Republic of China and internationally.
Market Cap
$46.9B
Pitch Price
$30.42
Price Target
N/A
Dividend
N/A
EV/EBITDA
13.99
P/E
17.90
EV/Sales
3.51
Sector
Hotels, Restaurants and Leisure
Category
growth
Flagging a recent IPO - Chagee (CHA) - orphaned security trading at a large spread to peers
CHA: Chinese premium milk tea franchise on NASDAQ trading at 19x LTM P/E (14x normalized for S&M) vs peers at 34-40x. 6,500 stores vs Mixue's 50k. Explosive growth (200% store growth FY23, 80% FY24) with 20% growth projected. -18.4% SSSG in Q4. Risks: delisting, low barriers to entry, comp hangover. Key catalyst: China stimulus.
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