TH International (US:THCH) Prnewswire·2024-02-26 12:45Company Highlights - TH International Limited (THCH) is expanding in China's fast-growing coffee market, which is transitioning from a tea-drinking culture [1] - The company plans to increase its locations to over 2,700 by 2026, nearly tripling its current footprint [1] - Much of the investment phase has been completed, focusing on building a scalable supply chain and technology system [1] - Tims China is positioned as a differentiated player in the market, offering competitive pricing and a locally adapted food menu [1] - Store EBITDA margin has expanded to 7.5% in Q3 2023, up from 5% in the previous quarter, with a loyalty program base growing to over 18 million [1] - As of September 30, 2023, THCH had RMB 461.9 million ($64.9 million USD) in cash and net debt of RMB 1.07 billion ($85 million USD) [1] - The fair value of THCH is estimated at $4.00 per share based on EV/Revenue analysis [1] Industry Context - The coffee consumption market in China is still in the early stages of growth, presenting significant opportunities for expansion [1] - The company operates under a model that includes both company-owned and franchise-operated stores, catering to various location sizes [2] - THCH is the exclusive master franchisee of Tim Hortons coffee shops in mainland China, Hong Kong, and Macau, as well as Popeyes restaurants in these regions [2]