Report
EUR 92.12
For Business Accounts Only
Green Tea Group is a restaurant chain operator for fusion cuisine in China. As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC. As per the CIC report, the group was the fourth largest casual Chinese restaurant operator in China as per revenue and number of restaurants in 2020.
The firm has grown its restaurant network rapidly over the track period and has grand plans to further grow its restaurant count going into FY24. While affected by the pandemic, the strong growth in FY19 pulled up its overall topline CAGR and it had also recorded a bounceback going into 9M21.
However, the bounceback in 9M21 was largely due to 5M21, with Jun-Sept 2021 recording a much subdued YoY growth. SSSG has also suffered as it expanded its restaurant count, suggesting a saturation in the regions it currently operates in, and also pushing the firm to look to lower tier cities for its growth plans. Operating in a highly fragmented market, it could see pricing pressures as it enters the lower tiered markets, combined with stiffening competition.
Green Tea Group Pre-IPO
Green Tea Group is looking to raise about US$150m in its upcoming Hong Kong IPO.Green Tea Group is a restaurant chain operator for fusion cuisine in China. As of the latest practicable date (LPD), it had a restaurant network of 236 restaurants covering 18 provinces, four municipalities and three autonomous regions in the PRC. As per the CIC report, the group was the fourth largest casual Chinese restaurant operator in China as per revenue and number of restaurants in 2020.
The firm has grown its restaurant network rapidly over the track period and has grand plans to further grow its restaurant count going into FY24. While affected by the pandemic, the strong growth in FY19 pulled up its overall topline CAGR and it had also recorded a bounceback going into 9M21.
However, the bounceback in 9M21 was largely due to 5M21, with Jun-Sept 2021 recording a much subdued YoY growth. SSSG has also suffered as it expanded its restaurant count, suggesting a saturation in the regions it currently operates in, and also pushing the firm to look to lower tier cities for its growth plans. Operating in a highly fragmented market, it could see pricing pressures as it enters the lower tiered markets, combined with stiffening competition.
Underlying
Green Tea Group
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Clarence Chu
Other Reports on these Companies
Other Reports from Aequitas Research
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.