Chagee Holdings Limited Unsponsored ADR (CHA) AI Stock Analysis

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Chagee Holdings Limited Unsponsored ADR

(NASDAQ:CHA)

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Rating:77Outperform

Price Target:$12.50▲(1.38% 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 ImprovementSharp year-over-year improvement in net and operating profitability demonstrates stronger operating leverage and cost discipline. Fourteen consecutive quarters of positive net income provide evidence that profitability is becoming a durable operating feature as the business continues scaling.

Negative Factors

Greater China PressurePressure in Greater China affects the company’s core market and indicates that domestic demand and unit productivity remain challenged. Continued weakness could limit consolidated growth, reduce operating leverage, and make the planned stabilization period longer than management currently expects.

Chagee Holdings Limited Unsponsored ADR (CHA) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $2.38B
Dividend Yield: 7.06%
Average Volume (3M): 884.78K
Price to Earnings (P/E): 11.8
Beta (1Y): 0.65
Revenue Growth: -0.17%
EPS Growth: 7.80%
Country: US
Employees: 4,800
Sector: General
Sector Strength: 55
Industry: Restaurants

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 Republic o...

Chagee Holdings Limited Unsponsored ADR Earnings Call Summary

Earnings Call Date:Aug 28, 2026(Q2-2026)|% Change Since:19.13%|Next Earnings Date:May 29, 2026

Earnings Call SentimentPositive

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.

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

Strong revenue scale-up and solid profitability, supported by a conservatively financed balance sheet (low leverage and healthy ROE). The main offsets are margin compression from prior peak periods and weaker cash-flow quality (FCF down and lower conversion vs net income), which raises near-term earnings-quality and reinvestment-risk flags.

Income Statement

78Positive

Balance Sheet

84Very Positive

Cash Flow

64Positive

Financial statement breakdown
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

Technical Analysis SentimentPositive

Last Price12.33

Price Trends

50DMA12.02Positive

100DMA11.55Positive

200DMA11.15Positive

Market Momentum

MACD0.16Positive

RSI51.86Neutral

STOCH52.91Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHA, the sentiment is Positive. The current price of 12.33 is below the 20-day moving average (MA) of 12.39, above the 50-day MA of 12.02, and above the 200-day MA of 11.15, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 52.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHA.

Chagee Holdings Limited Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

CHA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHA	77Outperform	$2.37B	11.77	16.82%	7.06%	-0.17%	7.80%
COCO	75Outperform	$3.76B	31.00	31.84%	―	25.97%	72.99%
FIZZ	71Outperform	$3.51B	19.75	32.60%	―	-1.80%	-5.87%
CELH	66Neutral	$8.22B	36.71	14.15%	―	49.09%	851.95%
ZVIA	56Neutral	$84.35M	-9.57	-18.64%	―	8.88%	46.53%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
OTLY	45Neutral	$259.13M	-2.77	675.83%	―	12.01%	61.83%

* General Sector Average

Performance Comparison

CHA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CHA	Chagee Holdings Limited Unsponsored ADR	12.33	-2.07	-14.38%
FIZZ	National Beverage	36.74	7.09	23.92%
CELH	Celsius Holdings	33.04	-10.97	-24.93%
OTLY	Oatly Group Ab	7.96	-4.93	-38.25%
ZVIA	Zevia Pbc Class A	1.18	-1.40	-54.26%
COCO	Vita Coco Company, Inc.	65.31	22.18	51.43%

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 Chi...

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.

Date of analysis: Sep 09, 2026

Chagee Holdings Limited Unsponsored ADR AI Stock Analysis