Chabaidao’s stock price continues to decline after listing

Chabaido (2555), this year’s new Hong Kong stock “fund-raising king”, was officially listed on April 23.  Unfortunately, its performance was not as expected.  The stock price fell by more than 30% the next day, closing at $11.30 on April 29, far lower than the IPO price of $17.5. 

Chabaido, the third largest brand of freshly made tea shops in mainland, is taking advantage of the slow market.  Co-founder and head of investment finance Gu Jilin said that although the current market conditions are relatively weak, with the company’s competitive advantages, they believe they can still attract international investment.  He reiterated that the listing plan has been carefully considered and is in line with long-term development and the interests of shareholders.  Also the company is developing rapidly, describing it as the “best time” to list on the Hong Kong stock market. 

Chabaido was established in 2008, rose to prominence during the COVID-19 pandemic.  There were approximately 500 branches in 2019, by the end of last year, the branch network had expanded to approximately 7,800, driving revenue last year to increase by 34.8%, to about 5.7 billion yuan.  Although the number of branches, profits or revenue are far less than the performance of the leader “ Mixue Ice Cream & Tea” in the first nine months of last year, Chabaido’s gross profit margin remains stable above 30%.

Source:
https://www.hk01.com/%E8%B2%A1%E7%B6%93%E5%BF%AB%E8%A8%8A/1013345/%E8%8C%B6%E7%99%BE%E9%81%93%E8%82%A1%E5%83%B9%E5%86%8D%E7%80%89%E9%80%BE3%E6%88%90%E6%97%A5%E5%AA%92%E5%BC%95%E9%8A%80%E8%A1%8C%E5%AE%B6%E6%8C%87%E5%B0%8D%E6%B8%AF%E8%82%A1%E5%B8%82%E6%B3%81%E6%84%9F%E5%88%B0%E7%84%A1%E8%A8%80