Green Tea Group combines 24.1% FY2025 revenue growth, net cash, an 8.48% dividend yield, and 7.0x P/E for a compelling undervaluation case.
Overview
Green Tea Group Limited (6831.HK) is a Mainland China casual Chinese restaurant operator founded in 2004, with 609 directly operated restaurants under the Green Tea, Mang Gang Le, and LongJing brands. Its value-for-money Jiangnan-inspired dining proposition targets mass-market consumers, families, and young professionals, with average customer spend of CNY54.6. **FY2025 demonstrated strong reported growth:** revenue rose 24.1% to RMB4,762.97 million, statutory net profit increased 38.9% to RMB486.48 million, adjusted net profit grew 41.0% to RMB508.89 million, and adjusted net margin expanded to 10.7%. Delivery revenue grew 66.5% and represented 25.3% of sales. Consensus expects FY2026 revenue to increase 24% to RMB5.88 billion and statutory EPS to rise 35% to RMB0.98 after a 5.9% FY2025 EPS beat. The stock trades at approximately 7.0x trailing P/E versus a 15.3x peer average and an estimated fair multiple of 11.5x. The balance sheet holds RMB1.199 billion of cash and no bank debt, while the HKD0.52 final dividend implies an 8.48% yield at HKD6.13. Near-term catalysts include clearing of the Partners Group stake overhang, buyback support, overseas openings, and potential valuation normalization.