Some tea beverage stocks moved higher against the broader market trend. As of press time, GUMING (01364) gained 4.55% to HK$22.06; MIXUE GROUP (02097) rose 3.52% to HK$405.4; AUNTEA JENNY (02589) climbed 1.3% to HK$124.8; and CHABAIDAO (02555) edged up 0.24% to HK$8.34.

On the news front, Zhongtai Securities noted that after a brief industry-wide growth slowdown in 2024, the tea beverage sector has experienced a recovery in the first half of this year. Leading brands MIXUE and GUMING achieved revenue growth of approximately 40% year-over-year in the first half of the year.

The firm believes that on one hand, the early 2025 listings of tea beverage brands represented by MIXUE, GUMING, and Ba Wang Cha Ji will help boost the overall penetration rate of the tea beverage industry and increase store traffic. On the other hand, the delivery war that began in the first half of the year, with tea beverages as a core subsidized category, has further enhanced single-store sales.

Overall, the firm believes that brands with good store expansion pace succeed primarily because their franchise store single-unit models are excellent. Therefore, future brand momentum will still heavily depend on the single-store models of franchise operations.