Two tea chains hot on the capital market in China – Hey Tea and Naixue Tea.
Valuation are said to be ¥8 billion (2019) and ¥6 billion (2018) respectively.
Each may have 200-250 stores. (Say Hey Tea 250 by end of 2018 and Naixue 200 by the end of 2018)
An average store say has a revenue run rate of 250k * 12 = ¥3 million / yr
Then revenue run rate is 750 million for Hey Tea and 600 million for Naixue.
With a revenue multiple at 10.0x, 600 * 10 = 6 billion for Naixue…
and 7.5 billion for Hey Tea…
Seems “good” in numbers… thanks to the support from Luckin Coffee..
Luckin has $4+ billion market cap and 20-25 revenue multiple (not run-rate)