Core Viewpoint - The report from Guotai Junan Securities initiates coverage on Hu Shang A Yi (02589) with a "Buy" rating and a target price of HKD 116.56, highlighting the company's brand matrix and market expansion strategy [1] Group 1: Company Overview - Hu Shang A Yi operates three brands: "Hu Shang A Yi," "Cha Pu Bu," and "Hu Ka," which cover different price segments and consumer groups, creating a comprehensive brand matrix [2] - The company has a mature product development system with an industry-leading frequency of new product launches, effectively responding to market demands and leading trends in healthier and tastier ready-to-drink beverages [2] Group 2: Market Potential - The ready-to-drink beverage market in China has significant growth potential, particularly in lower-tier markets, which are expected to be the main sources of growth [3] - The competition in the ready-to-drink tea industry is intense and fragmented, with Hu Shang A Yi holding a leading position in the northern market [3] Group 3: Expansion Strategy - The company implements a "One Body, Two Wings" strategy, with the main brand "Hu Shang A Yi" and two wings being "Cha Pu Bu" and overseas markets, estimating a domestic store opening potential of 18,000 for the main brand and over 5,000 for "Cha Pu Bu" [4] - The coffee business has undergone adjustments and is now integrated into the main brand, which is expected to contribute to incremental sales per store [4]