1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Research at:https:/ The 20theditionof

2、 the EM Sentiment SurveyClick to viewHesitant bulls of summer New-style freshly-made beverages is a fast-growing business in China,driven by young consumers We believe this new market will create its own version of Starbucks for tea drinkers In separate reports published today,we initiate coverage o

3、f Guming(Buy)and Mixue(Hold)Business is booming.Starbucks introduced coffee house culture to Americans and is now a global brand.In China,coffee drinking has yet to become part of daily life.Instead,demand for new-style tea beverages is growing rapidly,led by young consumers seeking inexpensive plac

4、es to meet friends,trendy products,customised service,and content for social media posts.Finding Chinas Starbucks.We believe this new consumer trend will create the equivalent of a Starbucks for tea drinkers in China,a brand that can replicate its success at home and in overseas markets.The freshly-

5、made tea shop market expanded at a CAGR of 25%over 2021-23 but is extremely fragmented there were 660,000 freshly-made tea shops in China by the end of 2024 but the survival rate is low.Our report explains the factors shaping the growth and margin prospects of the leading new-style freshly-made tea

6、shop companies in China and how their brands stack up against each other.Differentiation is key.We highlight two ways to succeed become the cost leader in the low-priced category,or specialise in one product in the mid-priced segment.For us,Mixue is the winner in the first category and Guming the se