Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [10]. Core Insights - Baima Tea is recognized as the largest high-end tea supplier in China, with a strong brand presence and continuous enhancement of brand equity [2]. - The company's revenue has shown steady growth, with a forecasted increase in earnings per share (EPS) from 2.64 to 3.69 CNY from 2025 to 2027 [10]. - The company is expanding its offline presence significantly, with plans to add 1,500 new stores in the next 3-5 years, focusing on lower-tier cities [9]. Summary by Sections Company Overview - Baima Tea is a well-known supplier of various tea products in China, including high-end Pu'er tea and other tea-related products, with its brand "Baima" recognized as a famous trademark [2]. Financial Performance - Revenue is projected to grow from 18.18 billion CNY in 2022 to 21.43 billion CNY in 2024, with net profit increasing from 1.66 billion CNY to 2.24 billion CNY during the same period [3]. - In the first half of 2025, revenue decreased by 4% to 10.63 billion CNY, primarily due to a reduction in offline stores [3]. Product Sales - In the first half of 2025, tea sales saw a slight decline of 4%, while tea utensils and tea food experienced growth of 1% and a decline of 20%, respectively [4]. - The average price of Baima tea increased from 643 CNY/kg in 2024 to 667 CNY/kg in 2025 [4]. Market Strategy - The company is enhancing its online sales through live streaming, which has contributed to an increase in online revenue share to 35.49% in the first half of 2025 [5]. - As of October 2025, the number of offline stores reached 3,730, with a net increase of 226 stores since the beginning of the year [9]. Earnings Forecast - The forecast for EPS is 2.64 CNY for 2025, with a projected PE ratio of 33, indicating a solid market position [10]. - Revenue is expected to grow steadily, with a projected increase to 2,598 million CNY by 2026 [12].
八马茶业（06980）：公司事件点评报告：高端中国茶第一股，“千城万店”加速扩张