The success of the local ready-to-drink tea brand CHAGEE is well known among Malaysians. In May 2024, CHAGEE announced the opening of its 100th outlet in Malaysia, highlighting the robust growth and demand for tea beverages in the country.

According to Statista, the out-of-home tea drinks market in Malaysia is projected to reach 2.64 billion MYR in 2024, representing a substantial market opportunity.

One company that stands out as an emerging player in this market is HEYTEA.

HEYTEA, a leading brand originating from China, has experienced significant growth, with a 280% increase to 2,300 franchise outlets since its first outlet opened in November 2022.

In Malaysia, HEYTEA's journey has just begun. The first HEYTEA store opened at The Exchange TRX Mall in December 2023, followed by other prime locations such as Mid Valley Megamall, Sunway Pyramid, and 1 Utama.

Interestingly, Auro Holdings Bhd (AURO, 5025), a low-profile Malaysian listed company, has secured the franchise rights for HEYTEA in Malaysia.

Looking ahead, Auro plans to open more HEYTEA stores in prominent locations across Malaysia, including Genting Highlands

Sky Avenue, Sunway Velocity Mall, and Gurney Plaza.

Historically, Auro has faced financial challenges. However, with the addition of HEYTEA, the company is expected to see significant contributions to its financial performance, potentially elevating its valuation to new heights.

Therefore, be sure to add Auro Holdings Bhd to your watchlist!