Green Tea Group Limited, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Walter Woo from CMB International Securities maintained a Buy rating on the stock and has a HK$10.74 price target.
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Walter Woo has given his Buy rating due to a combination of factors that demonstrate the promising outlook for Green Tea Group Limited. The company has shown solid same-store sales growth (SSSG) and margin trends, which are expected to continue improving in the second half of 2025. Despite a decline in average selling prices (ASP), the SSSG has turned positive since April 2025, indicating a resilient performance.
Furthermore, the company is poised for sales growth driven by robust delivery sales, innovative product launches, and overseas expansion. Margin improvements are anticipated due to factors such as gross profit margin expansion, reduced rental expenses, and economies of scale. These positive developments have led to an upward revision of net profit forecasts and a target price increase to HK$ 10.74, based on a 13x FY25E adjusted P/E ratio. The stock’s current valuation is attractive, trading below peers’ average, which supports the Buy recommendation.
According to TipRanks, Woo is a 4-star analyst with an average return of 5.5% and a 60.18% success rate. Woo covers the Consumer Cyclical sector, focusing on stocks such as Green Tea Group Limited, Xtep International Holdings, and ANTA Sports Products.