Since Chagee, a Chinese premiu-To The Moon - Tiger Brokers Online Investing Community - To The Moon

Since Chagee, a Chinese premium tea chain, filed for its U.S. IPO on March 25, 2025, aiming to list on Nasdaq under the ticker "CHA," let’s break down the key factors to assess its potential as an investment.

Chagee has shown impressive growth. In 2024, its net revenue nearly tripled to $1.71 billion USD (12.41 billion Chinese yuan) from $638 million USD (4.64 billion yuan) the previous year, with net income surging 213.3% to $344.5 million USD (2.51 billion yuan). Its gross merchandise value (GMV) also jumped 172.9% to $4.05 billion USD (29.46 billion yuan), reflecting strong consumer demand. The company operates 6,440 teahouses globally as of December 31, 2024, with 6,284 in China, and plans to use IPO proceeds to expand further in China and internationally, including its first U.S. store in Los Angeles this spring. This growth trajectory suggests Chagee is capitalizing on the booming tea beverage market, often positioning itself as a modernized alternative to coffee giants like Starbucks.

However, there are risks to consider. The tea beverage industry has seen mixed IPO outcomes recently. Competitors like Mixue and Guming went public in Hong Kong, with Mixue raising $477 million USD in March 2025 and Guming gaining 12.7% since its February IPO. Yet, earlier examples like NAIXUE (listed in Hong Kong in 2021) saw its market value plummet from over $3.8 billion USD to $258 million USD, and ChaPanda’s valuation has also declined since its April 2024 debut. These cases highlight the volatility and investor caution surrounding the sector, especially when growth expectations don’t materialize as projected. Chagee’s U.S. listing could face similar scrutiny, particularly given historical challenges for Chinese companies on U.S. exchanges, such as Luckin Coffee’s delisting after a 2020 fraud scandal (though it later recovered in China).

Does it make sense? If you’re a long-term investor comfortable with volatility, Chagee’s growth story could be compelling, especially if you believe tea can rival coffee globally. But if you’re chasing a quick flip or lack access to the IPO price, waiting for the stock to settle post-debut might be wiser—many IPOs dip after the initial hype.

Chagee's IPO Frenzy: Can Its Low Valuation Spark a Day-One Surge?

Chagee subscription begins on Friday. It plans to list on NASDAQ under the ticker "CHA" and raise between $400 million to $500 million. In 2024, the company's total GMV (Gross Merchandise Value) reached RMB 29.5 billion, a year-on-year increase of over 80%. Its revenue was RMB 12.405 billion, with a net profit of RMB 2.515 billion, achieving a net profit margin of 20.3%, significantly higher than the industry average. ------------ Can Chagee replicate the surge of China's tea brand like Mixue group?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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HilaryWilde
03-27
HilaryWilde
Exciting opportunity

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