Changes in Hong Kong stocks | Green Tea Group (06831) rose more than 4%, and its stock price hit a new listing high. Institutions say it is relatively certain that expanding stores will drive performance growth

The Zhitong Finance App learned that Green Tea Group (06831) rose by more than 4%, reaching a new high of HK$8.2 since listing. As of press release, it rose 4.11% to HK$8.1, with a turnover of HK$28.180,900.

According to the news, CMB International released a research report saying that in the 2023-26 fiscal year, the group's compound annual sales growth rate is expected to reach 18%, and the adjusted net profit compound annual growth rate will reach 25%. The bank expects sales and net profit to grow by more than 20% and 30% respectively in the first half of 2025. The bank believes that the group's takeout business has huge potential and is expected to become a new driving force for future growth. According to the report, Green Tea Group is a leading Chinese casual dining group in the mainland. It ranked fourth in the industry in 2023, with a market share of 0.7%. Benefiting from high cost performance and unique decoration styles, the group's single-store sales recovery rate is leading the industry.

According to GF Securities, the company's net profit for 25-27 is estimated to be 4.8 billion yuan, 6.1 billion yuan, and 770 million yuan, respectively. The bank believes that the company is still in a period of rapid growth, and the certainty that store expansion will drive performance growth is relatively high. The same store is expected to gradually recover as the general environment stabilizes, the base declines, and takeout volume, and has the logic of optimizing single stores and improving operating efficiency. The company was given a 25-year 14 times PE, corresponding to a reasonable value of HK$10.87 per share, giving it a “buy” rating.