China BEST Conference Takeaways

China BEST Conference Takeaways for Chagee Holdings Ltd (CHA.US; Overweight). China SSSG improved from <-5% in Jul to flat in Aug, driven by promotions and new products. 3Q SSSG could turn positive if SSSG can be at HSD in Sept. 2026 sales and non-GAAP net profit guidance both unchanged at flat yoy. Management targets positive single-digit SSSG and net profit improvement in 2027. Competition remains intense on product launches while subsidies are getting more rational. Management plans to narrow discounts. Domestic: prioritizes same-store sales stabilization and network optimization, while slowing new store openings. Overseas: target 100 new openings in 2H26, with the US to reach ~20 by year-end; Malaysian SSSG has recently turned positive with +SD country level NPM;