BAMA TEA (06980) dropped more than 10% in the afternoon session, hitting a low of HK$43, below its IPO price of HK$50. At the time of writing, the stock was down 10.32% at HK$43.26, with a turnover of HK$11.618 million.

Public data shows that BAMA TEA is a leading tea brand and retail chain supplier in China, offering a comprehensive range of products covering all six major tea categories and tea accessories. In 2024, the company ranked first in the number of tea specialty stores nationwide and also led in market sales revenue for oolong tea and black tea.

Zhongtai Securities noted in a research report that the company's tea business is expected to grow steadily, with accelerated offline expansion and improved store efficiency, complemented by online channel synergies. Its branding strategy, including flagship products, continues to strengthen.

In recent years, tea market demand has become more diversified, while supply-side consolidation benefits industry leaders. As the top premium tea brand, BAMA TEA is well-positioned to further increase its market share.

Short-term performance shows a 4% year-on-year decline in revenue and an 18% drop in profit for the first half of 2025. However, with a recovery in high-end consumption expected in the second half, revenue and profits are likely to stabilize and rebound.