Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bama-tea-co-ltd" target="_blank" data-smartkarma-citation="entities:44267:1" rel="noopener">Bama Tea (BAMA HK)</a> launched its Hongkong IPO aiming to raise up to HK$368M. The company plans to sell 9M shares at HK$45-$50 per share.</li>
<li>Bama Tea is a provider of tea leaf products in China, covering all six major types of tea leaves in China and non-tea-leaf products such as tea-ware and tea snacks.</li>
<li>Amidst the highly fragmented tea consumption market Bama Tea relies on a volume play model with its branded offerings. We would recommend the investors to subscribe to the issue.</li>
</ul>



Bama Tea (BAMA HK) launched its Hongkong IPO aiming to raise up to HK$368M. The company plans to sell 9M shares at HK$45-$50 per share.
Bama Tea is a provider of tea leaf products in China, covering all six major types of tea leaves in China and non-tea-leaf products such as tea-ware and tea snacks.
Amidst the highly fragmented tea consumption market Bama Tea relies on a volume play model with its branded offerings. We would recommend the investors to subscribe to the issue.


Bama Tea (BAMA HK) IPO: Franchise Driven Branded Volume Play Model Will Compensate Foregone Margins

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The core of Bama's business model is light-asset operation of "brand + channel". Bama is highly dependent on franchise model, but we’ve seen a diminishing marginal benefit of channel penetration.</li>
<li>Due to sluggish consumption environment, revenue of Bama could decline by 4% in 2025.From 2026 to 2027, as strategic adjustments take effect, Bama may resume growth of 3% to 5%.</li>
<li>Considering the decline in performance in 25H1 and the low valuation of traditional tea enterprises in the Hong Kong stock market, Bama’s valuation performance may be under pressure.</li>
</ul>


The core of Bama's business model is light-asset operation of "brand + channel". Bama is highly dependent on franchise model, but we’ve seen a diminishing marginal benefit of channel penetration.
Due to sluggish consumption environment, revenue of Bama could decline by 4% in 2025.From 2026 to 2027, as strategic adjustments take effect, Bama may resume growth of 3% to 5%.
Considering the decline in performance in 25H1 and the low valuation of traditional tea enterprises in the Hong Kong stock market, Bama’s valuation performance may be under pressure.


Pre-IPO Bama Tea (PHIP Updates) - Some Points Worth the Attention

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mixue-group" target="_blank" data-smartkarma-citation="entities:40623:1" rel="noopener">Mixue Group (2097 HK)</a> raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its founders and pre-IPO investors is set to expire today.</li>
<li>MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



Mixue Group (2097 HK) raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its founders and pre-IPO investors is set to expire today.
MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
In this note, we will talk about the lockup dynamics and possible placement.


Aequitas: MIXUE IPO Lockup - US$1.8bn Pre-IPO Shareholder Release

<ul>
<li>
<a href="https://www.smartkarma.com/entities/mixue-group" target="_blank" data-smartkarma-citation="entities:40623:1" rel="noopener">Mixue Group (2097 HK)</a> raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its cornerstone investors is set to expire soon.</li>
<li>MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.</li>
<li>In this note, we will talk about the lockup dynamics and possible placement.</li>
</ul>



Mixue Group (2097 HK) raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its cornerstone investors is set to expire soon.
MIXUE Group (MIXUE) is a freshly-made drinks company providing affordable products to consumers, including freshly-made fruit drinks, tea, ice cream and coffee, typically priced at around one USD per item.
In this note, we will talk about the lockup dynamics and possible placement.


MIXUE IPO Lockup - US$480m Cornerstone Lockup Release

<ul>
<li>The most significant issue in the domestic tea industry is product standardization. This makes it difficult for tea companies to expand their market share and achieve economies of scale.</li>
<li>Bama’s revenue growth showed an upward trend, but the growth rate is declining. There're already signs of growth stagnation. High selling and marketing expenses will put pressure on profit margin.</li>
<li>Lancang and <a href="https://www.smartkarma.com/entities/tenfu-caymans-hldgs-co-ltd" target="_blank" data-smartkarma-citation="entities:5958:1" rel="noopener">Tenfu Caymans (6868 HK)</a> are comparable peers. Due to larger market share/revenue scale and higher profit margin in 24Q1-Q3, we think Bama’s valuation should be higher than peers.</li>
</ul>


The most significant issue in the domestic tea industry is product standardization. This makes it difficult for tea companies to expand their market share and achieve economies of scale.
Bama’s revenue growth showed an upward trend, but the growth rate is declining. There're already signs of growth stagnation. High selling and marketing expenses will put pressure on profit margin.
Lancang and Tenfu Caymans (6868 HK) are comparable peers. Due to larger market share/revenue scale and higher profit margin in 24Q1-Q3, we think Bama’s valuation should be higher than peers.


Pre-IPO Bama Tea - The Business Model, the Challenges and the Outlook

China

Bama Tea Co. Ltd. processes and markets tea products. The Company mainly plants, develops, produces, and sells tea products. Bama Tea also exports its products.

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Bama Tea (BAMA HK)

Bama Tea (BAMA HK) IPO: Franchise Driven Branded Volume Play Model Will Compensate Foregone Margins

Bama Tea (BAMA HK) launched Hong Kong IPO. Bama specializes in tea leaf products in China. Pure volume play with branded offerings in a fragmented...

Tina Banerjee

Pre-IPO Bama Tea (PHIP Updates) - Some Points Worth the Attention

Bama's light-asset business model faces challenges with diminishing franchise benefits/declining revenue, but strategic adjustments could lead to...

Xinyao (Criss) Wang

Aequitas: MIXUE IPO Lockup - US$1.8bn Pre-IPO Shareholder Release

Mixue Group (2097 HK) raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its founders and pre-IPO investors is set to expire...

Sumeet Singh

MIXUE IPO Lockup - US$480m Cornerstone Lockup Release

Mixue Group (2097 HK) raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its cornerstone investors is set to expire soon.

Sumeet Singh

Pre-IPO Bama Tea - The Business Model, the Challenges and the Outlook

China's tea industry face challenges in product standardization hindering market expansion. Bama's growth is slowing, with signs of stagnation...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Bama Tea (BAMA HK) IPO: Franchise Driven Branded Volume Play Model Will Compensate Foregone Margins

​Bama Tea (BAMA HK) launched Hong Kong IPO. Bama specializes in tea leaf products in China. Pure volume play with branded offerings in a fragmented...

Tina Banerjee

Pre-IPO Bama Tea (PHIP Updates) - Some Points Worth the Attention

​Bama's light-asset business model faces challenges with diminishing franchise benefits/declining revenue, but strategic adjustments could lead to...

Xinyao (Criss) Wang

Aequitas: MIXUE IPO Lockup - US$1.8bn Pre-IPO Shareholder Release

Mixue Group (2097 HK) raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its founders and pre-IPO investors is set to expire...

Sumeet Singh

MIXUE IPO Lockup - US$480m Cornerstone Lockup Release

Mixue Group (2097 HK) raised around US$450m in its Hong Kong IPO in March 2025. The lockup on its cornerstone investors is set to expire soon.

Sumeet Singh

Pre-IPO Bama Tea - The Business Model, the Challenges and the Outlook

​China's tea industry face challenges in product standardization hindering market expansion. Bama's growth is slowing, with signs of stagnation...

Xinyao (Criss) Wang

Bama Tea (BAMA HK) launched Hong Kong IPO. Bama specializes in tea leaf products in China. Pure volume play with branded offerings in a fragmented...

Bama's light-asset business model faces challenges with diminishing franchise benefits/declining revenue, but strategic adjustments could lead to...

China's tea industry face challenges in product standardization hindering market expansion. Bama's growth is slowing, with signs of stagnation...