Investment experts opine that Mixue and Chagee can grow their business further through overseas expansion, but their recent revenue and profit growth largely depends on the ongoing “e-commerce war” among platform players like Meituan, JD.com Inc and Alibaba’s fully-owned subsidiary Ele.me.
From being little known brands to Malaysians, China beverage chains such as Mixue and Chagee have become household names among local consumers in just around five years. Both companies have also successfully completed their initial public offerings (IPOs) this year with their shares now publicly traded on the Hong Kong and US markets. Do they offer attractive opportunities to local investors?
Since its IPO on March 3, Hong Kong-listed Mixue Group has seen its share price rally by 174.56% to HK$556 ($90.71) per share, as at June 16. The share price of Nasdaq-listed Chagee Holdings, meanwhile, has increased just 5.67% to US$29.59 ($37.90) on June 16, since its IPO on April 17.
