Starbucks(US:SBUX) Guan Cha Zhe Wang·2025-06-23 11:02Core Viewpoint - Hillhouse Capital's participation in the reverse roadshow for Starbucks' China operations signals strong interest in acquiring the business, with a transaction valuation estimated between $5 billion to $6 billion [1][2] Group 1: Starbucks' Market Position - Starbucks has established a significant presence in China with 7,758 stores across over 1,000 county-level markets as of Q2 2025, but its market share has significantly declined [1] - Luckin Coffee surpassed Starbucks in market share, holding 19.5% as of the first nine months of 2023, and has a total of 24,032 stores as of Q1 2025 [2] Group 2: Strategic Moves and Partnerships - Starbucks has indicated a willingness to explore strategic partnerships and potential minority stake sales in its China operations, as stated by CEO Laxman Narasimhan [2][3] - The involvement of strategic investors like Hillhouse Capital and Carlyle Group is seen as a crucial step for Starbucks to adapt its market strategy in China [3] Group 3: Investment Implications - Hillhouse Capital's expertise in the consumer sector and successful investments in companies like Meituan and JD.com could provide strategic guidance and resource integration for Starbucks in China [2] - The participation of established investment firms in the roadshow adds new possibilities for Starbucks' future development and may lead to significant capital operations [3]