Equity Analyst, Investory

Devi Subhakesan

Equity Analyst

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chagee-holdings-limited" target="_blank" data-smartkarma-citation="entities:45011:1" rel="noopener">Chagee Holdings (CHA US)</a> 's IPO valuation discount to its peers, including HK-listed tea-beverage players as well as US-listed China-based coffee-beverage player, suggest a strong potential upside on listing.</li>
<li>US Investor concern over impact of tariffs and caution due to lingering memories of the Luckin Coffee scandal could translate to higher risk premium for the stock.</li>
<li>Expect Chagee to trade at a discount to budget beverage peers like <a href="https://www.smartkarma.com/entities/mixue-group" target="_blank" data-smartkarma-citation="entities:40623:1" rel="noopener">Mixue Group (2097 HK)</a> given its limited room for network expansion within China and likely slower overseas growth.</li>
</ul>



Chagee Holdings (CHA US) 's IPO valuation discount to its peers, including HK-listed tea-beverage players as well as US-listed China-based coffee-beverage player, suggest a strong potential upside on listing.
US Investor concern over impact of tariffs and caution due to lingering memories of the Luckin Coffee scandal could translate to higher risk premium for the stock.
Expect Chagee to trade at a discount to budget beverage peers like Mixue Group (2097 HK) given its limited room for network expansion within China and likely slower overseas growth.


Chagee IPO: Is It Worth the Risks? Peer Comparison and Valuation Analysis.

US IPOs and Secondary Offerings, IPO Boutique

IPO Boutique

US IPOs and Secondary Offerings

For more than 20 years, we have been providing research, analysis, commentary and ratings on US Equity Capital Markets to institutional investors (US IPOs and Secondary Offerings). Our vast network of contacts across the Equity Capital Markets and attention-to-detail sets us apart from our competitors.

Since 2012, we have achieved a successful hit rating on 89% of Buy-rated IPOs. The collective “Buy” ratings averaged a first trade of 16.3% above issue.Our Neutral Rated Deals averaged just 2% above the issue price at first trade.

Our written research includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

In addition, we provide a high-touch premium desk access which includes analyst access, as well as real time insights on US IPOs as well as secondary offerings.

IPOs and Secondary Offerings

<ul>
<li>Chagee's order book is heavily influenced from Asian Investors as the deal is considered multiple-times oversubscribed.</li>
<li>The underwriters and company came to market with a manageable size transaction and an attractive valuation.</li>
<li>The geopolitical headwinds, specifically between China and the United States, is forcing many traditional IPO investors to stay on the sidelines. </li>
</ul>


Chagee's order book is heavily influenced from Asian Investors as the deal is considered multiple-times oversubscribed.
The underwriters and company came to market with a manageable size transaction and an attractive valuation.
The geopolitical headwinds, specifically between China and the United States, is forcing many traditional IPO investors to stay on the sidelines. 


Chagee Holdings Limited (CHA): International Investors to Dominate the IPO Order Book

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chagee-holdings-limited" target="_blank" data-smartkarma-citation="entities:45011:1" rel="noopener">Chagee Holdings (CHA US)</a> is offering 14.68 million shares for USD26 to USD28 each to raise upto USD411 million in its initial public offering in the US.</li>
<li>Chagee's premium branded teahouses blend traditional tea culture with modern, tech-driven service, distinctly setting itself apart from bubble tea kiosks. </li>
<li>Chagee's IPO is priced at a discount to forward valuations of recently listed (in HK) China-based freshly brewed drinks players and leading Cafe companies.</li>
</ul>



Chagee Holdings (CHA US) is offering 14.68 million shares for USD26 to USD28 each to raise upto USD411 million in its initial public offering in the US.
Chagee's premium branded teahouses blend traditional tea culture with modern, tech-driven service, distinctly setting itself apart from bubble tea kiosks. 
Chagee's IPO is priced at a discount to forward valuations of recently listed (in HK) China-based freshly brewed drinks players and leading Cafe companies.


Chagee IPO: Luckin X Starbucks of Tea. Pricing, Valuation, Key Facts & Financials

<ul>
<li>As of December 31, 2024, their network comprised 6,440 teahouses, including 6,284 located in China.</li>
<li>Their net revenues increased by 844% to RMB4,640.2 million in 2023 from RMB491.7 million in 2022. </li>
<li>We anticipate this company to set terms (share size, price range) and debut in the second half of April.</li>
</ul>


As of December 31, 2024, their network comprised 6,440 teahouses, including 6,284 located in China.
Their net revenues increased by 844% to RMB4,640.2 million in 2023 from RMB491.7 million in 2022. 
We anticipate this company to set terms (share size, price range) and debut in the second half of April.


Chagee Holdings Limited (CHA): Peeking at the IPO Prospectus of China's Premium Tea Brand

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>The market reflects on Trump's economic policy to find the rationale behind. Our issue with Steven Miran's proposal of strong -tariff/weak-dollar is whether it will bring back manufacturing to USA; </li>
<li>Child birth policy from the capital of Inner-Mongolia could boost consumption and cost the country only Rmb100bn a year; </li>
<li>BYD launches 1,000 V super charge. Xiaomi and XPEV talking about overseas expansion. LI Auto guided C1Q25 sharply lower.</li>
</ul>


The market reflects on Trump's economic policy to find the rationale behind. Our issue with Steven Miran's proposal of strong -tariff/weak-dollar is whether it will bring back manufacturing to USA; 
Child birth policy from the capital of Inner-Mongolia could boost consumption and cost the country only Rmb100bn a year; 
BYD launches 1,000 V super charge. Xiaomi and XPEV talking about overseas expansion. LI Auto guided C1Q25 sharply lower.


[Blue Lotus China New Consumer Weekly, 11/52] Our First Read of Trumponomics

China

Luckin Coffee Inc. provides non-alcoholic beverages. The Company offers various types of coffee. Luckin Coffee serves customers in China.

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Luckin Coffee (LKNCY US)

Chagee IPO: Is It Worth the Risks? Peer Comparison and Valuation Analysis.

Investors can expect a strong upside on listing despite the backdrop of tariff-related market concerns given Chagee’s IPO is priced at a notable...

Devi Subhakesan

Chagee Holdings Limited (CHA): International Investors to Dominate the IPO Order Book

Chagee's IPO attracts heavy interest from Asian investors despite geopolitical tensions, with a manageable size transaction and attractive valuation.

IPO Boutique

Chagee IPO: Luckin X Starbucks of Tea. Pricing, Valuation, Key Facts & Financials

Chagee - the premium teahouse chain - has priced its US IPO at US$26 to US$26, at a valuation discount to freshly made beverage players listed in...

Devi Subhakesan

Chagee Holdings Limited (CHA): Peeking at the IPO Prospectus of China's Premium Tea Brand

A company with a large network of teahouses in China saw a significant increase in net revenues in 2023 and is expected to debut in April 2025.

IPO Boutique

[Blue Lotus China New Consumer Weekly, 11/52] Our First Read of Trumponomics

Analysis of Trump's economic policy, Inner-Mongolia's child birth policy, and updates on BYD, Xiaomi, XPEV, and LI Auto in the market.

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Chagee IPO: Is It Worth the Risks? Peer Comparison and Valuation Analysis.

Investors can expect a strong upside on listing despite the backdrop of tariff-related market concerns given Chagee’s IPO is priced at a notable...

Devi Subhakesan

Chagee Holdings Limited (CHA): International Investors to Dominate the IPO Order Book

​Chagee's IPO attracts heavy interest from Asian investors despite geopolitical tensions, with a manageable size transaction and attractive valuation.

IPO Boutique

Chagee IPO: Luckin X Starbucks of Tea. Pricing, Valuation, Key Facts & Financials

Chagee - the premium teahouse chain - has priced its US IPO at US$26 to US$26, at a valuation discount to freshly made beverage players listed in...

Devi Subhakesan

Chagee Holdings Limited (CHA): Peeking at the IPO Prospectus of China's Premium Tea Brand

​A company with a large network of teahouses in China saw a significant increase in net revenues in 2023 and is expected to debut in April 2025.

IPO Boutique

[Blue Lotus China New Consumer Weekly, 11/52] Our First Read of Trumponomics

​Analysis of Trump's economic policy, Inner-Mongolia's child birth policy, and updates on BYD, Xiaomi, XPEV, and LI Auto in the market.

Blue Lotus Research Institute

Chagee's IPO attracts heavy interest from Asian investors despite geopolitical tensions, with a manageable size transaction and attractive valuation.

A company with a large network of teahouses in China saw a significant increase in net revenues in 2023 and is expected to debut in April 2025.

Analysis of Trump's economic policy, Inner-Mongolia's child birth policy, and updates on BYD, Xiaomi, XPEV, and LI Auto in the market.