$BAMA TEA(06980.HK)

The "first tea stock" in Hong Kong, Bama Tea, has been quite popular this week. Have you been following it?

The company just listed on the Hong Kong Stock Exchange on October 28, with a first-day surge of 86.7%. However, it recently experienced a significant pullback, dropping over 11% intraday on November 4, and has given back nearly 17% in a week. Ultimately, Bama Tea's latest interim report (2024/2025H1) shows that while overall revenue and store numbers are still growing, gross and net profit margins have slightly declined, with net profit down over 17% year-on-year, raising concerns about earnings sustainability. Coupled with the new B-mechanism listing rules, market sentiment is already volatile.

The premium tea market looks lively, but competition is fierce. Bama's online revenue is increasing but still can't support the valuation ceiling, and whether offline store expansion can bring qualitative change remains to be seen. What do you think—is this a short-term shakeout or a fundamental concern? Will you buy the dip or wait for clearer signals? Feel free to share your thoughts in the comments and discuss which premium tea brand you think has the most potential in the future.