Shares of BAMA TEA (06980) surged more than 8% during the morning trading session. At the time of writing, the stock was up 8.39%, trading at HKD 24.80, with a turnover of HKD 5.4898 million.

The company recently issued a positive profit alert, forecasting that for the six-month period ending June 30, 2026, its revenue will increase by no less than 30% year-on-year, while attributable net profit is expected to grow by no less than 60%. The significant year-on-year growth in attributable net profit is primarily attributed to the expansion and growth of its franchised channels, online channels, and key account channels, which has driven revenue and profitability growth across these segments.

Soochow Securities Company Limited. released a research report stating that it expects BAMA TEA's (06980) attributable net profit for 2026-2028 to be RMB 279 million, RMB 332 million, and RMB 376 million respectively (previous forecasts were RMB 255 million, RMB 294 million, and RMB 326 million). This corresponds to current price-to-earnings (P/E) ratios of approximately 5.0x, 4.2x, and 3.7x respectively. The brokerage maintains its "Buy" rating on the stock. The report suggests that the company's current valuation is in a low range, with short-term operational momentum continuing its upward trajectory. In the medium to long term, leveraging its strong brand heritage, standardized quality control capabilities, and comprehensive omni-channel depth, the company is well-positioned to further increase its brand concentration and market share.