China Galaxy Securities has initiated coverage on ChaBaiDao (02555), assigning a "recommend" rating. The brokerage anticipates a performance rebound for the tea chain in 2025, driven by seasonal consumption peaks, enhanced R&D capabilities, and optimized marketing strategies. Significant expansion potential remains in both lower-tier domestic markets and overseas locations.

Projections indicate net profits attributable to the parent company will reach RMB920 million in 2025, RMB1.16 billion in 2026, and RMB1.32 billion in 2027. Corresponding price-to-earnings ratios stand at 15X, 12X, and 11X respectively. The freshly made tea beverage sector currently enjoys favorable cyclical conditions, benefiting from stabilized competition and increased market concentration. As a leading brand with substantial takeout sales, ChaBaiDao stands to gain disproportionately from robust second-half demand during the summer peak season.

ChaBaiDao has established a comprehensive product ecosystem spanning core offerings like fruit teas and signature milk teas to growth categories including premium fresh milk teas and probiotic yogurt beverages. The company achieved a "new product weekly" cadence in 2025, launching over 40 items in the first half alone while significantly improving hit rates.

Supply chain enhancements ensure efficient product launches and standardized quality control. Strategic supplier partnerships, nationwide distribution networks, and in-house packaging capabilities create a growth flywheel: consumer insights fuel R&D execution, leading to scaled production of popular items. Overseas expansion continues successfully under the "one-city-one-strategy" approach, with operational stores now established in South Korea, Malaysia, and Australia.