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CHA

9/9 Score

Chagee Holdings Limited American Depositary Shares

Analysis Date: February 16, 2026

Chagee Holdings Limited, through its subsidiaries, owns, operates, and franchises teahouses under the CHAGEE brand name in the People's Republic of China and internationally. The company engages in sale of tea drinks and related raw materials, packaging, teahouse equipment and other supplies. It operates through online platforms. The company was founded in 2017 and is based in Shanghai, the People's Republic of China.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 30.9%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 16.4%

  • Cash Machine

    FCF / Assets > 5%

    Value: 39.4%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 13.0%

  • Share Buybacks

    Share Count is Dropping

    Value: 0.0%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 47.2%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Consumer Defensive

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.12x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 2873.6%

Analysis Summary

This company, CHA, appears to be a genuine contender for a long-term holding. It's demonstrating impressive returns on invested capital and equity, suggesting efficient use of its resources, while its debt levels are remarkably low, providing a strong margin of safety. A business that's easy to understand, with a durable moat and consistent growth, all at a reasonable valuation, is a rare find, and this one checks all the boxes.

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