HK Stock Market Move | CHABAIDAO (02555) has risen more than 5% in Hong Kong. Tea drink brands are competing to enter the Hong Kong market. The company opened its first store in Hong Kong last month.

CHABAIDAO (02555) is currently up more than 5%, as of the time of writing, it is up 4.64%, trading at HK$9.25, with a turnover of HK$21.49 million. Huafu Securities pointed out that as mainland new tea beverage brands gradually expand, the Hong Kong market has become an important direction for their layout. Since 2023, at least 42 mainland catering brands have entered Hong Kong. Various brands have adopted differentiated pricing and rich product line strategies to meet local consumption needs, and have won market share through higher cost-effectiveness and segmentation positioning. This further consolidates the competitiveness of their brands in the Hong Kong tea beverage market, and is expected to provide a second growth curve for the company. It is reported that on October 11, CHABAIDAO's first store in Hong Kong opened, with prices in Hong Kong 70% higher than mainland prices, but the opening day sales were extremely hot, with consumers waiting for about 2 hours. Northeast pointed out that CHABAIDAO has outstanding online strategies, with a high proportion of takeaway orders. Its geographical distribution is relatively balanced, but its proportion of lower-tier cities is significantly lower than other brands, indicating that there is still room for growth in lower-tier markets. CHABAIDAO's product structure is relatively balanced, with a high proportion of high-margin milk tea products sales compared to peers, resulting in a gross profit margin 4 percentage points higher than the industry average, and the net profit margin is also the highest among the top 4 players. In addition, CHABAIDAO's supply chain focuses on light operations, allowing for rapid expansion and coverage nationwide.