Huatai: First coverage of CHABAIDAO (02555) with a "buy" rating.

Huatai has released a research report, covering CHABAIDAO (02555) for the first time and giving it a "buy" rating. The bank believes that CHABAIDAO has three major competitive advantages: 1) grasping both the price-performance ratio and convenience of the two major demand pain points of the C-end market, focusing on the mass consumer price range, improving product accessibility through flexible site selection, and optimizing takeaway scenarios to increase store efficiency. 2) B-end expansion nationwide through the small store model, creating high efficiency UE to continue attracting franchisees. 3) Strong scale efficiency in the supply chain and bargaining power, with a higher inventory turnover rate than industry peers. In the long term, the company still has room for expansion in the sinking market and key hub locations in high-tier cities. In addition, overseas business is expected to become the company's second growth curve.