Hong Kong Stock Market Performance: The Hong Kong bourse experienced a rally on the 28th, with the HSI reaching a 4.5-year high of 27,757, up 630 points or 2.3%, and a turnover of HK$176.495 million.

MIXUE GROUP Stock Decline: MIXUE GROUP's stock opened 2.5% lower and fell to HK$396, down 10.6%, following a downgrade by UBS, which cited potential short-term pressures and reduced profit forecasts.

Pressure on Tea Beverage Stocks: Several tea beverage stocks, including CHABAIDAO and GUMING, faced declines of 2-3%, diverging from the overall market trend.

Short Selling Activity: The short selling ratios for various stocks, including MIXUE GROUP and others in the tea beverage sector, indicate increased market skepticism, with significant short selling reported.

Expert Meeting on Beverage Market: A recent expert meeting highlighted expectations that subsidies in China's fresh beverage market will phase out over time, with niche brands potentially achieving profitability within 6-8 months.

Food Delivery Losses Forecast: Goldman Sachs predicts that losses for food delivery companies like Alibaba and Meituan will decrease by the end of December 2026, despite a reduction in subsidies impacting same-store sales.

Sales Projections for GUMING and MIXUE: The report forecasts a decline in same-store sales for GUMING and MIXUE Group by 6% and 4% respectively in 2026, while both companies are expected to open thousands of new stores in untapped markets.

Investment Ratings: Goldman Sachs maintains a Buy rating for both GUMING and MIXUE Group, setting target prices of HKD32 and HKD579 respectively for the next 12 months.

CICC's Participation: CICC recently participated in CHABAIDAO's Investor Day, discussing the company's management and its current adjustment period expected to last until 2025.

Profitability Improvements: The company is anticipated to enhance profitability through various strategies, including franchisee subsidies recovery and standardized product offerings, with significant improvements expected by 2026.

Dividend Strategy: CHABAIDAO aims for a dividend payout ratio of 60-80% over the next three years, offering a current dividend yield of 5.4-7.2%, indicating potential investment value.

Target Price Adjustment: CICC has reduced its target price for CHABAIDAO by 23% to $9.3, maintaining an Outperform rating, with projected PE ratios of 14x for 2025 and 12x for 2026, suggesting a 31% upside.

Hong Kong Stock Market Performance: The Hong Kong stock market opened lower, with the HSI down 63 points at 25,718, and later reported a decline of 174 points or 0.7%, with a turnover of HKD63.586 billion.

Coffee Price War in Mainland China: GUMING launched a coffee promotion with prices as low as RMB2.9, causing its stock to drop 9.03% to HKD21.76, amid a surge in trading volume.

Decline in Tea Beverage Stocks: Other tea beverage stocks like MIXUE GROUP and AUNTEA JENNY also experienced declines, with MIXUE down 5.44% and AUNTEA down 5.58%.

NAYUKI Stock Stability: In contrast, NAYUKI's stock remained stable, slightly increasing by 0.847% to HKD1.18, with a lower trading volume compared to other stocks.