HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Chagee Holdings Limited operates as a holding company. The Company, through its subsidiaries, provides a wide range of tea drinks products and services. Chagee Holdings serves customers worldwide.

<ul>
<li>Chagee adopts the "1+1+9+N" business model, which ensures the successful replication of the single store model. However, we saw performance decline in 2024, and future performance growth sustainability is uncertain.</li>
<li>In terms of valuation, comparable companies include Starbucks and MIXUE. We think valuation of Chagee should be lower than MIXUE and Starbucks as both have proved themselves in the industry.</li>
<li>Future growth would inevitably slow down. Investors may need more 'safety margins' on valuation because despite short-term strong demand, investors need to be alert to the performance validation after IPO.  </li>
</ul>


Chagee adopts the "1+1+9+N" business model, which ensures the successful replication of the single store model. However, we saw performance decline in 2024, and future performance growth sustainability is uncertain.
In terms of valuation, comparable companies include Starbucks and MIXUE. We think valuation of Chagee should be lower than MIXUE and Starbucks as both have proved themselves in the industry.
Future growth would inevitably slow down. Investors may need more 'safety margins' on valuation because despite short-term strong demand, investors need to be alert to the performance validation after IPO.  


Pre-IPO Chagee Holdings - The Business Model, the Concerns Behind and Valuation Outlook

US IPOs and Secondary Offerings, IPO Boutique

IPO Boutique

US IPOs and Secondary Offerings

For more than 20 years, we have been providing research, analysis, commentary and ratings on US Equity Capital Markets to institutional investors (US IPOs and Secondary Offerings). Our vast network of contacts across the Equity Capital Markets and attention-to-detail sets us apart from our competitors.

Since 2012, we have achieved a successful hit rating on 89% of Buy-rated IPOs. The collective “Buy” ratings averaged a first trade of 16.3% above issue.Our Neutral Rated Deals averaged just 2% above the issue price at first trade.

Our written research includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

In addition, we provide a high-touch premium desk access which includes analyst access, as well as real time insights on US IPOs as well as secondary offerings.

IPOs and Secondary Offerings

SmartStop Self Storage REIT / Equity Capital Markets

SmartStop Self Storage REIT, Inc. is a self-storage REIT company. The Company focuses on the acquisition, ownership, and operation of self-storage properties. SmartStop Self Storage REIT serves clients in the United States and Canada.

<ul>
<li>SmartStop priced a full-size deal of 27.0mm shares at $30.00 and opened for trading at $32.40 for a gain of 8% at first trade.</li>
<li>The offering finished five-times oversubscribed with the underwriter stating that the deal had sizable participation from long-only and REIT-dedicated accounts.</li>
<li>A low-risk storage unit company which pays a monthly dividend, like SmartStop, attracted the right buyer for this deal to work given the current economic environment.</li>
</ul>


SmartStop priced a full-size deal of 27.0mm shares at $30.00 and opened for trading at $32.40 for a gain of 8% at first trade.
The offering finished five-times oversubscribed with the underwriter stating that the deal had sizable participation from long-only and REIT-dedicated accounts.
A low-risk storage unit company which pays a monthly dividend, like SmartStop, attracted the right buyer for this deal to work given the current economic environment.


SmartStop Self Storage (SMA): Upside Surprise, IPO Pops 8% at Open and Trades Higher

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chagee-holdings-limited" target="_blank" data-smartkarma-citation="entities:45011:1" rel="noopener">Chagee Holdings (CHA US)</a> is planning to raise up to US$500m through its upcoming US IPO.</li>
<li>Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks.</li>
<li>In this note, we look at the firm's past performance.</li>
</ul>



Chagee Holdings (CHA US) is planning to raise up to US$500m through its upcoming US IPO.
Chagee is a leading premium tea drinks brand, serving healthy and delicious freshly-made tea drinks.
In this note, we look at the firm's past performance.


Chagee Pre-IPO - Market Leading Growth but Showing Signs of Fatigue

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chagee-holdings-limited" target="_blank" data-smartkarma-citation="entities:45011:1" rel="noopener">Chagee Holdings (CHA US)</a>, a leading premium tea drinks brand, is seeking to raise US$400-500 million through a Nasdaq IPO. </li>
<li>According to iResearch, as of December 31, 2024, Chagee was the largest premium freshly made tea drink brand in China by the number of stores.</li>
<li>The bull case rests on a strong brand, leading market share, peer-leading revenue growth, top-tier profitability and cash generation.   </li>
</ul>



Chagee Holdings (CHA US), a leading premium tea drinks brand, is seeking to raise US$400-500 million through a Nasdaq IPO. 
According to iResearch, as of December 31, 2024, Chagee was the largest premium freshly made tea drink brand in China by the number of stores.
The bull case rests on a strong brand, leading market share, peer-leading revenue growth, top-tier profitability and cash generation.   


Chagee Holdings (CHA US) IPO: The Bull Case

<ul>
<li>According to our sources, the deal is multiple-times oversubscribed -- our sources stated around 5x. </li>
<li>Self-Storage was Monday's second best performing sub-sector (+1.8%) as the overall REIT sector (+0.7%) slightly outperformed the broader market.</li>
<li>While the "typical" IPO investor may not be "enthused", the timing for this type of deal "may" be ideal for yield-chasers.</li>
</ul>


According to our sources, the deal is multiple-times oversubscribed -- our sources stated around 5x. 
Self-Storage was Monday's second best performing sub-sector (+1.8%) as the overall REIT sector (+0.7%) slightly outperformed the broader market.
While the "typical" IPO investor may not be "enthused", the timing for this type of deal "may" be ideal for yield-chasers.


SmartStop Self Storage (SMA): IPO for Yield Chasers, Traditional Players on the Sidelines