八马茶业花12年打破IPO屡败魔咒

Core Viewpoint - Eight Horses Tea Industry has successfully passed the listing hearing on the Hong Kong Stock Exchange, marking a significant step towards its IPO after a lengthy 12-year journey, amidst challenges faced by the tea industry in capital markets [2][5][11]. Company Overview - Eight Horses Tea Industry has attempted to go public multiple times since 2013, with three failed attempts to list on the A-share market between 2013 and 2022 due to various market conditions and internal adjustments [3][11]. - The company transitioned to the Hong Kong market in 2023, submitting its prospectus and successfully passing the hearing in October [5][11]. Market Context - The tea industry is considered a challenging sector for capital investment, with few successful IPOs among tea companies since 2012. The complexity of the supply chain and the non-standardized nature of tea products contribute to this difficulty [4][11]. - As of 2023, only a few tea companies, including Lincang Ancient Tea, have successfully listed, with significant stock price declines post-IPO [4]. Business Performance - Eight Horses Tea Industry has established itself as a leader in the Chinese tea market, ranking first in terms of sales revenue and store count as of 2023. The company has maintained its position as the top seller of Tieguanyin tea for over a decade [8][12]. - The company reported revenues of RMB 1.82 billion, RMB 2.12 billion, and RMB 2.14 billion for the years 2022, 2023, and 2024 respectively, with a noticeable slowdown in growth for 2024 [14][15]. Challenges and Concerns - Despite its market leadership, Eight Horses Tea faces performance concerns, with a decline in revenue and net profit reported in the first half of 2023, attributed to decreased sales in offline channels and rising administrative costs [16]. - The company has a family-controlled management structure, which raises governance concerns as it scales and seeks to meet higher regulatory standards post-IPO [16][17]. Industry Outlook - The overall Chinese tea market is projected to grow from approximately RMB 288.9 billion in 2020 to about RMB 407.9 billion by 2029, with a compound annual growth rate (CAGR) of around 4.6% [13]. - The high-end tea market is expected to grow at a faster rate, with a CAGR of approximately 5.6% from 2024 to 2029, indicating a potential opportunity for Eight Horses Tea to expand its market share [13].