Zhejiang Merchants Securities: Initiate Shanghai Auntie (02589.HK) with a "buy" rating, relying on multiple brand matrix to promote scale expansion.

According to the Wise Finance APP, Zheshang Securities issued a research report stating that it initiated coverage on Shanghai Auntie (02589.HK) with a "buy" rating. The company started with "Wugu Milk Tea" and later focused on four major product lines such as fresh fruit tea, launched 300+ new products, and established a 12+8+15 supply chain system to ensure stable supply. Through a high-viscosity franchising system for rapid expansion, the ready-to-drink beverage industry has vast space and is expected to exceed 510 billion yuan in scale by 2023. With product innovation, supply chain advantages, and franchise model, the company continues to strengthen brand awareness and is expected to seize the industry growth dividend.