CICC initiates coverage on TeaBaiDao with an outperform rating for the first time, expecting to achieve good performance growth.

Zhongjin has released a research report, considering that Chabaida has a balanced product matrix and store layout. The company is expected to achieve good performance growth by continuously expanding its stores in the future. It is the first time for the stock to be covered and given an outperform industry rating, with a target price of 12 Hong Kong dollars. Based on the relative valuation method of the price-earnings ratio, it corresponds to forecasted price-earnings ratios of 19 times and 15 times for the current and next year, respectively. The bank believes that the ready-to-drink tea industry is expected to maintain rapid growth, with the popular price range of 10 to 20 RMB already dominating the market. The industry leader is expected to continue to expand market share through economies of scale. It is also believed that Chabaida's core competitive advantages include a balanced and diverse product matrix that continues to be favored by consumers; scale effects and supply chain capabilities support a balanced nationwide layout; a systematic franchise management system and efficient business model help the company steadily expand its stores. The company has established a complete franchise management system, including franchisee screening, store location selection, new store guidance, and store management and operation. Zhongjin predicts that Chabaida's earnings per share for the current and next year will be 0.59 and 0.72 RMB respectively, with an average annual compound growth rate of 50%.