BofA update shows where active managers are putting money
Investing.com - Citi initiated coverage on Green Tea Group Ltd (HK:6831) with a Buy rating and a price target of HK$9.40 on Wednesday.
The Hong Kong-listed casual Chinese restaurant operator is positioned for high growth according to Citi, which views the company as well differentiated from listed Chinese hotpot operators and western quick-service restaurants.
Green Tea Group has demonstrated quick new-store breakeven periods, with substantially all of its new restaurants achieving initial breakeven within 1-4 months of opening, Citi noted in its research.
The firm highlighted Green Tea’s innovative products featuring Chinese fusion cuisine, accessible pricing, and brand image that showcases Chinese traditional art and natural landscapes through restaurant décor.
Citi projects accelerated net profit growth for Green Tea Group in 2025, with minimal negative impact on operating profit margins despite the company’s plans for accelerated new restaurant openings.
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