Nayuki 奈雪の茶 Singapore
  • Nayuki represents the emergence of a modern day tea culture in China, especially targeted to the millennial generation.
  • Nayuki operates modern teahouses in China serving freshly-made drinks and handcrafted baked goods, while at the same time providing an interior space for customers to socialize. This concept differentiates Nayuki from traditional teahouses and tea stands.
  • Nayuki is the second largest player in the modern tea market, with 18.9% market share and is currently expanding its outlets to gain greater market share.
  • Modern teahouse industry growth momentum is strong and CAGR is expected to grow at 32.7% from 2020 to 2025.
  • Initial mid-pricing (HK$18.50) implies around 8.8x PSR based on FY20 revenue, whereas Starbucks, a mature player, is valued at 5.5x PSR. Assuming a 32.7% CAGR growth rate, current valuation has not fully priced in potential growth.
  • Conclusion: Nayuki is priced fairly but we could likely see upside gains during its IPO debut given that this will be the first pure-play tea beverage listing in the world. 
  • Total offer shares for Nayuki is 257mn and pricing range is between HK$17.20 to HK$19.80.
  • Shares begin trading Wednesday, 30 June 2021