Green Tea Group stock price target raised to HK$11.10 by Citi

Published 07/07/2025, 08:50
Green Tea Group stock price target raised to HK$11.10 by Citi

Investing.com - Citi has raised its price target on Green Tea Group Ltd (HK:6831) to HK$11.10 from HK$9.40 while maintaining a Buy rating on the casual Chinese restaurant operator.

The firm views Green Tea as a high-growth company that differentiates itself from listed Chinese hotpot operators and western quick-service restaurants through innovative Chinese fusion cuisine, accessible pricing, and a warm brand image.

Citi notes that Green Tea’s restaurant décor, which highlights Chinese traditional art and natural landscapes, has helped the company secure quick new-store breakeven, with substantially all new restaurants achieving initial breakeven within 1-4 months.

The quick breakeven period is expected to fuel accelerated net profit growth in 2025, with minimal negative impact from new openings on operating profit margin, according to the research firm.

Citi’s new price target is based on a 15.0x 2025 estimated price-to-earnings ratio, increased from 12.8x previously, representing approximately a 15% discount to the trading average of China restaurant peers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.