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Chagee Holdings Limited Unsponsored ADR
(NASDAQ:CHA)
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Rating:77Outperform
Price Target:
$14.50
▲(34.14% Upside)
Action:Reiterated
Date:09/09/26
The score is driven primarily by strong financial fundamentals (rapid revenue growth, solid profitability, and low leverage), supported by attractive valuation (low P/E and high dividend yield). Technicals are favorable with price above major moving averages, though nearing overbought levels. Earnings-call signals are positive on product execution, improving same-store trends, overseas momentum, and shareholder returns, but near-term demand softness and rising operating costs keep the overall score in the upper-middle range rather than top-tier.
Positive Factors
Profitability improvement
Sustained profitability, including 14 consecutive quarters of positive net income, indicates the model is generating earnings beyond a single strong period. The sharp improvement in operating and net margins also gives Chagee greater capacity to fund expansion, product development, and shareholder returns.
Negative Factors
Greater China demand pressure
The core Greater China market is showing weaker store productivity and demand, creating a substantial counterweight to overseas growth. Continued pressure could limit same-store sales, reduce operating leverage, and make network expansion less efficient if recovery remains uneven.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability improvement
Sustained profitability, including 14 consecutive quarters of positive net income, indicates the model is generating earnings beyond a single strong period. The sharp improvement in operating and net margins also gives Chagee greater capacity to fund expansion, product development, and shareholder returns.
Read all positive factors
Chagee Holdings Limited Unsponsored ADR (CHA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.18B
Dividend Yield7.62%
Average Volume (3M)1.11M
Price to Earnings (P/E)11.0
Beta (1Y)0.85
Revenue Growth-0.17%
EPS Growth7.80%
CountryUS
Employees4,800
SectorGeneral
Sector StrengthN/A
IndustryRestaurants
Share Statistics
EPS (TTM)6.98
Shares Outstanding125,489,220
10 Day Avg. Volume1,129,462
30 Day Avg. Volume1,113,034
Financial Highlights & Ratios
PEG Ratio-0.24
Price to Book (P/B)1.80
Price to Sales (P/S)1.02
P/FCF Ratio11.09
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.15Price Target Upside49.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)9.04
Revenue Forecast (FY)$14.17B
Chagee Holdings Limited Unsponsored ADR Business Overview & Revenue Model
Company Description
Chagee Holdings Limited, operating through its various subordinate entities, is engaged in the ownership, operation, and licensing of teahouse establishments bearing the distinctive CHAGEE brand. These operations extend across the People's Republi...
Chagee Holdings Limited Unsponsored ADR Earnings Call Summary
Earnings Call Date:Aug 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 27, 2026
Earnings Call Sentiment Positive
The call shows a predominantly constructive operational and financial story: meaningful profitability improvement, strong cost discipline, record product innovation and a large overseas GMV acceleration. These positives are tempered by sequential softness in GMV and revenues in the core Greater China market, elevated company-owned operating costs from network build-out, and a competitive, structurally shifting industry. Management is focused on quality of growth, product pipeline and international expansion while evaluating shareholder return mechanisms.Positive Updates
Strong Profitability Improvement
GAAP net income of RMB 464.8 million with a net income margin of 13.6%, up from 2.3% in the year-ago period; operating income RMB 524.7 million with an operating margin of 15.4% versus 3.2% a year ago. Company reported 14 consecutive quarters of positive net income.
Negative Updates
Sequential GMV and Revenue Softness
Total GMV of RMB 7,663 million declined 3.3% sequentially; net revenue declined 3.7% quarter-over-quarter, indicating near-term moderation in demand and top-line momentum.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profitability Improvement
GAAP net income of RMB 464.8 million with a net income margin of 13.6%, up from 2.3% in the year-ago period; operating income RMB 524.7 million with an operating margin of 15.4% versus 3.2% a year ago. Company reported 14 consecutive quarters of positive net income.
Read all positive updates
Company Guidance
Management guided a focus on high‑quality, disciplined execution in H2 2026 — maintaining a steady new‑product cadence (after 17 launches in Q2), expanding categories (e.g., gelato rolled out to >190 teahouses with >20% offline GMV uplift; specialty deals averaged 124 cups/teahouse/day in initial days) and prioritizing teahouse experience and targeted overseas expansion — while driving profitability and shareholder returns. They said same‑store trends are improving (July showed a low single‑digit decline and August is expected to turn positive YoY), and reiterated priorities to upgrade equipment, membership and service, refine consumer ops and marketing, and expand thoughtfully across Greater China and overseas. Financial guardrails remain intact: Q2 GMV ≈ RMB7.66bn, net revenue RMB3,414.6m (+2.5% YoY), gross margin 54%, GAAP net income RMB464.8m (13.6% margin) and non‑GAAP net income RMB488.7m (14.3% margin), cash ≈RMB6,795.5m, teahouse network 7,639 locations (+108 QoQ; 7,240 in Greater China, 399 overseas), overseas GMV RMB504m (+114.3% YoY, +18.2% QoQ) — and the company remains active on capital return (USD150m repurchase program with ~USD30m executed as of Aug 24; Board evaluating regular dividends after a prior USD177m special dividend).Chagee Holdings Limited Unsponsored ADR Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.13B | 12.91B | 12.41B | 4.64B | 491.65M |
| Gross Profit | 5.41B | 5.92B | 5.68B | 1.97B | 133.07M |
| EBITDA | 1.67B | 1.76B | 3.10B | 1.02B | -107.47M |
| Net Income | 1.34B | 1.17B | 2.52B | 800.90M | -90.72M |
Balance Sheet | |||||
| Total Assets | 12.20B | 11.47B | 6.60B | 2.94B | 393.96M |
| Cash, Cash Equivalents and Short-Term Investments | 8.20B | 8.00B | 4.85B | 2.42B | 200.75M |
| Total Debt | 1.41B | 1.28B | 548.06M | 108.84M | 63.45M |
| Total Liabilities | 3.76B | 3.89B | 3.84B | 2.53B | 701.31M |
| Stockholders Equity | 8.22B | 7.35B | 2.65B | 408.81M | -307.42M |
Cash Flow | |||||
| Free Cash Flow | 706.82M | 1.19B | 2.60B | 1.90B | 32.30M |
| Operating Cash Flow | 1.19B | 1.64B | 2.84B | 1.93B | 43.03M |
| Investing Cash Flow | -2.17B | -825.02M | -229.48M | -146.71M | -10.98M |
| Financing Cash Flow | -1.08B | 2.05B | -173.93M | 344.20M | -33.00K |
Chagee Holdings Limited Unsponsored ADR Technical Analysis
Neutral
10.81
Price Trends
11.24
Positive
11.21
Positive
11.24
Positive
Market Momentum
0.13
Positive
46.88
Neutral
9.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHA, the sentiment is Neutral. The current price of 10.81 is below the 20-day moving average (MA) of 11.89, below the 50-day MA of 11.24, and below the 200-day MA of 11.24, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 9.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHA.
Chagee Holdings Limited Unsponsored ADR Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.18B | 10.97 | 16.82% | 7.62% | -0.17% | 7.80% | |
77 Outperform | $3.36B | 30.56 | 31.09% | ― | 26.10% | 69.15% | |
73 Outperform | $2.78B | 15.95 | 32.60% | 10.44% | -1.80% | -5.87% | |
58 Neutral | $7.08B | 133.29 | 4.36% | ― | 82.86% | -35.81% | |
56 Neutral | $102.87M | -9.98 | -19.05% | ― | 7.22% | 42.48% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | $377.84M | -2.85 | -3133.06% | ― | 11.40% | 36.08% |
* General Sector Average
CHA
Chagee Holdings Limited Unsponsored ADR
11.41
-4.43
-27.97%
FIZZ
National Beverage
29.67
-3.66
-10.97%
CELH
Celsius Holdings
27.99
-28.91
-50.81%
OTLY
Oatly Group
11.84
-5.07
-29.98%
ZVIA
Zevia PBC
1.33
-1.40
-51.28%
COCO
Vita Coco Company
58.59
15.77
36.83%
Chagee Holdings Limited Unsponsored ADR Corporate Events
Chagee Boosts Q2 2026 Profit Amid China Slowdown and Overseas Growth
Aug 28, 2026
Chagee reported unaudited results for the quarter ended June 30, 2026, highlighting continued expansion to 7,639 teahouses worldwide, up 8.5% year over year, with particularly strong momentum overseas where GMV more than doubled. However, Greater ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.