Chinese fruit tea drink chain Chabaidao surged as much as over 80% to hit a new record high of HK$16 before paring gains to 31.8%.
Chabaidao currently operating over 8,000 stores across China, is the third-largest freshly made tea beverage company in China, holding a 6.8% market share, according to its prospectus, citing data from market research firm Frost & Sullivan. The company is also expanding its international presense, having entered markets such as South Korea, Thailand, and Australia. On October 11, Chabaidao officially opened its first store in Hong Kong.
BOC International said in a note that the dining sector has performed strongly, driven by increased travel and the boost from consumption vouchers. According to Meituan, dining spending during the first five days of the National Day holiday surged 33.4% year-on-year, with nighttime dining growing by 44.8%.
Guosen Securities said that leading companies in the dining sector, those with strong supply chains and high brand loyalty, still maintained an advantage, showing positive alpha growth. Given China’s recent efforts to stimulate consumption, the dining sector is expected to benefit from both improved fundamentals and positive sentiment.
