0101 GMT - China's Mixue and Guming stand out for their scalability and competitiveness in the fast-growing but highly fragmented freshly made tea shop market, HSBC Global Research says. Analysts Lina Yan and Yimin Wang think this new consumer trend will give rise to China's version of Starbucks for tea drinkers. They note the industry's 25% CAGR over 2021-2023, with 660,000 tea shops in China by end-2024. Differentiation is key to survival. To succeed, one needs to become the cost leader in the low-price category, like Mixue, or specialize in a product in the mid price segment, like Guming, HSBC says. It initiates coverage on both, assigning a buy rating and a HK$32.20 target to Guming and a hold rating and a HK$544.10 target to Mixue. (farah.elias@wsj.com)

(END) Dow Jones Newswires

June 25, 2025 21:01 ET (01:01 GMT)

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