Chagee Holdings Limited Unsponsored ADR (CHA) AI Stock Analysis

• Market Cap: $2.98B
• Dividend Yield: N/A
• Average Volume (3M): 644.41K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.29
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 4,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.29
• Shares Outstanding: 120,478,386
• 10 Day Avg. Volume: 610,708
• 30 Day Avg. Volume: 644,410
• PEG Ratio: 0.08
• Price to Book (P/B): 16.38
• Price to Sales (P/S): 3.50
• P/FCF Ratio: 16.74
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 0.46
• Enterprise Value/Ebitda: 1.41
• 1Y Price Target: $16.60
• Price Target Upside: 2.22% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 9.93
• Revenue Forecast (FY): $13.24B

• Rating: 67 Neutral
• Price Target: $16.50 ▲(1.60% Upside)

Chagee Holdings Limited's overall stock score reflects a solid financial foundation with efficient cost management and low leverage. However, recent declines in revenue and profitability, coupled with bearish technical indicators, suggest caution. The company's strategic overseas expansion and product innovation are positive, but the lack of strong momentum and valuation concerns moderate the outlook.

Positive Factors

Overseas Market Expansion

The successful entry into new markets like the Philippines and Vietnam, with significant GMV growth, indicates strong international expansion potential.

Product Innovation

Award-winning products and top-selling innovations enhance brand reputation and drive consumer interest, supporting long-term growth.

Strong Financial Position

A robust cash position and special dividend reflect financial strength, enabling strategic investments and shareholder returns.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining sales momentum, potentially impacting future growth and profitability.

Same-Store Sales GMV Decline

A significant drop in same-store sales indicates competitive pressures and market saturation, affecting core business performance.

Decreased Profit Margins

Reduced profit margins highlight cost pressures and efficiency challenges, which could hinder long-term profitability.

Chagee Holdings Limited Unsponsored ADR Business Overview & Revenue Model

Company Description

Chagee Holdings Limited, through its subsidiaries, owns, operates, and franchises teahouses under the CHAGEE brand name in the People's Republic of China and internationally. The company engages in sale of tea drinks and related raw materials, packaging, teahouse equipment and other supplies. It operates through online platforms. The company was founded in 2017 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

Chagee Holdings generates revenue through multiple streams, primarily from the sale of its tea products, which includes both packaged retail products and bulk sales to distributors. The company's revenue model is built on direct sales to consumers through online platforms and retail partnerships. Additionally, Chagee may leverage partnerships with wholesalers and retailers to expand its market reach. The company may also explore licensing agreements and collaborations with other brands or entities in the beverage sector, which can provide supplementary income. Key factors contributing to its earnings include product innovation, effective marketing strategies, and the growing global demand for health-conscious beverage options.

Chagee Holdings Limited Unsponsored ADR Financial Statement Overview

Summary

Chagee Holdings Limited demonstrates strong financial health with efficient cost management and low leverage. However, recent declines in revenue growth and profitability margins indicate potential challenges. The company maintains strong cash flow ratios, but the negative free cash flow growth in TTM warrants attention. Overall, the company is well-positioned but should focus on reversing the recent downward trends in growth and profitability.

Income Statement

The company shows strong gross profit margins consistently above 45%, indicating efficient cost management. However, the net profit margin has decreased from 20.28% in 2024 to 15.06% in TTM, reflecting a decline in profitability. Revenue growth has been negative in the TTM period, suggesting potential challenges in maintaining sales momentum.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.09 in TTM, indicating low financial leverage and risk. The equity ratio is strong, and the return on equity, although decreased, remains healthy at 48.45% in TTM, showcasing effective use of equity to generate profits.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 9.17% in TTM, which could impact future investments. However, the operating cash flow to net income ratio remains above 1, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong at 0.91, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	13.27B	12.41B	4.64B	491.65M
Gross Profit	6.27B	5.68B	1.97B	133.07M
EBITDA	2.04B	2.95B	1.08B	-110.93M
Net Income	1.80B	2.52B	800.90M	-90.72M
Balance Sheet
Total Assets	11.90B	6.60B	2.94B	393.96M
Cash, Cash Equivalents and Short-Term Investments	9.12B	4.85B	2.42B	200.75M
Total Debt	1.00B	548.06M	108.84M	63.45M
Total Liabilities	3.24B	3.84B	2.53B	701.31M
Stockholders Equity	8.46B	2.65B	408.81M	-307.42M
Cash Flow
Free Cash Flow	1.96B	2.60B	1.90B	32.30M
Operating Cash Flow	2.00B	2.84B	1.93B	43.03M
Investing Cash Flow	-547.47M	-229.48M	-146.71M	-10.98M
Financing Cash Flow	3.25B	-173.93M	344.20M	-33.00K

Chagee Holdings Limited Unsponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHEF	72 Outperform	$2.42B	34.45	14.12%	―	8.88%	54.12%
MNSO	72 Outperform	$6.17B	20.50	20.83%	3.12%	13.37%	-19.37%
CHA	67 Neutral	$2.98B	26.88	37.99%	―	―	―
THO	67 Neutral	$5.69B	22.23	6.19%	1.83%	-4.62%	-2.29%
SHAK	62 Neutral	$3.68B	84.60	8.83%	―	13.49%	402.23%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WEN	60 Neutral	$1.62B	9.00	100.85%	7.89%	-0.21%	0.16%

Chagee Holdings Limited Unsponsored ADR Corporate Events

Chagee Holdings Reports Mixed Q3 2025 Financial Results Amid Expansion

Chagee Holdings Limited announced its unaudited financial results for the third quarter of 2025, revealing a mixed performance. The company experienced a 25.9% increase in its teahouse network compared to the previous year, with a total of 7,338 teahouses. However, despite the expansion, total net revenues decreased to RMB3,208.3 million from RMB3,541.2 million in the same quarter of 2024, primarily due to a decline in sales volume in the Greater China market. This was attributed to intensified competition among food delivery platforms. The company’s operating income and net income also saw declines, with operating income at RMB454.4 million and net income at RMB397.9 million. Despite these challenges, Chagee’s overseas market showed significant growth, with a 75.3% increase in GMV, and the company-owned teahouses reported a 63.8% rise in net revenues, driven by network expansion.