Chagee Holdings IPO Valuation Analysis

• Our base case valuation of Chagee Holdings is target price of $46.7 per share, representing 67% higher than the high end of the IPO price range ($28 per share).

• Our base case valuation is based on a P/E of 21.4x on our estimated net profit of 2.9 billion RMB in 2025.

• We used a very conservative valuation multiple, mainly due to the extremely high macro risks related to the ongoing tariff dispute between China and the United States.