Chagee's IPO Frenzy: Can Its Low Valuation Spark a Day-One Surge?
$Chagee Holdings Limited(CHA)$ , one of China's fastest-growing tea beverage chains, is officially going public this week — and its IPO is drawing serious attention from both retail and institutional investors.
Chagee Joins $333 Billion Market Boom with US IPO Filing - The Exchange Asia
IPO Details
Issue Price: US$26-28
Total Fundraising: ~US$410 million
Implied Valuation: ~US$5.1 billion (≈HK$39.6B)
At the IPO price, Chagee’s estimated market cap of US$5.1 billion puts it close to Guming. Compared to Mixue, it makes 50% of the revenue, but only has 25% of the valuation.
Chagee’s revenue (CNY ¥12.41B) is roughly 50% of Mixue’s.
Its net profit (CNY ¥2.52B) is 56% of Mixue’s and 1.68× Guming’s.
By earnings power alone, Chagee appears undervalued. Its profitability outpaces Guming and holds up strongly against Mixue — yet its valuation lags far behind.
Does that spell underpricing? Or is the market rightfully cautious?
Global Reach: A Singapore Story
Chagee isn’t just a domestic brand anymore. It now runs over 4,500 stores worldwide, and boasts 130 million registered members.
In Singapore, its presence is rising fast: Stores at Orchard Road, Raffles City, and other prime locations
Southeast Asia’s tea wars are heating up, and Singapore is at the heart of it.
But Not All Smooth Tea...
Chagee is listing in the US, not Hong Kong — meaning it could face de-listing risk amid US-China tensions. Tariff pressures and rising geopolitical scrutiny may impact long-term sentiment. Southeast Asia’s tea market is saturated, and brand loyalty can shift quickly
Will Chagee pop on day one like early Bubble Tea IPOs $MIXUE BINGCHENG CO LTD.(MXUBY)$?
Or will it follow the path of $NAYUKI(02150)$ , which saw early hype and then a painful correction?
As a Singapore-based consumer/investor, do you feel Chagee has stronger resonance here than Mixue or Heytea?
Join our topic and post directly: Chagee's IPO Frenzy: Can Its Low Valuation Spark a Day-One Surge? or leave your comments to win tiger coins~
A tool to boost your purchasing power and trading ideas with CashBoost! Open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with upcoming 0-commission, unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Other helpful links:
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.
$Chagee Holdings Limited(CHA)$ , one of China's fastest-growing tea beverage chains, is officially going public this week — and its IPO is drawing serious attention from both retail and institutional investors.
At the IPO price, Chagee’s estimated market cap of US$5.1 billion puts it close to Guming. Compared to Mixue, it makes 50% of the revenue, but only has 25% of the valuation.
Chagee’s revenue (CNY ¥12.41B) is roughly 50% of Mixue’s.
Its net profit (CNY ¥2.52B) is 56% of Mixue’s and 1.68× Guming’s.
Will Chagee pop on day one like early Bubble Tea IPOs $MIXUE BINGCHENG CO LTD.(MXUBY)$?
Or will it follow the path of $NAYUKI(02150)$ , which saw early hype and then a painful correction?
As a Singapore-based consumer/investor, do you feel Chagee has stronger resonance here than Mixue or Heytea?
leave your comments to win tiger coins~
From an investment angle, the IPO pricing looks attractive. Chagee’s earnings strength stands out — nearly double Guming’s profit, yet it trades at a lower valuation. That suggests potential upside. Still, I understand the caution given US-China tensions and the risk of a future de-listing.
If Chagee delivers on growth and manages sentiment well, it could shape up as a strong consumer growth story. Personally, I’m watching its post-IPO price action — if macro fears weigh it down early, that could be a solid entry opportunity.
@Tiger_SG @TigerStars @Tiger_comments @TigerGPT
Compared to its competitor $MIXUEGROUP(02097)$ Chagee offers a more premium experience with higher quality ingredients and a wide range of healthier choice.
Mixue's focus is on affordability and accessibility. Can Chagee's IPO match the extraordinary success of Mixue's IPO in Hong Kong? Mixue's share price has surged over 80% since its IPO in February this year.
Chagee's business in China is doing very well. It has 6,440 tea houses, 97% of which are in China at the end of 2024. This is up 83% compared to 2023. Net Revenues
不过要说能否首日飙升，还得看几点：第一，机构认购的热度，目前来看反应不俗，说明市场对其成长性认可；第二，它本身主打“中高端茶饮”定位清晰，加上盈利能力也不错，不是纯烧钱扩张那种；第三，新茶饮赛道竞争激烈，投资者也越来越挑剔，是否能持续盈利会是关键。
如果资金面配合，加上短线情绪推动，我觉得首日出现不错的涨幅是有机会的，但也别过度神话，理性参与更重要。
Tried Mixue once, not worth the hype. Honestly, Koi taste way better.
Great article, would you like to share it?
Great article, would you like to share it?