TH International Limited (THCH) operates as the exclusive franchisee for Tim Hortons in China, managing and expanding the brand’s footprint. The company is focused on offering a unique coffee and fast-food experience, blending Canadian traditions with localized tastes. It also emphasizes digital integration to cater to tech-savvy consumers in the Chinese market.

Stock Overview Post Reverse Split • Ticker: THCH • Exchange: NASDAQ • Current Price: $3.15 (as shown in the chart) • Recent Split: 1-for-5 reverse stock split on January 13, 2025 • Purpose: To meet Nasdaq’s minimum bid price requirement for continued listing. • Day Range: Around $3.00 - $3.20 based on chart data.

Technical Analysis 1. Moving Averages (MA): • MA(5), MA(10), and MA(20) show signs of potential recovery after a steep decline, but the trend is still weak. 2. RSI (14): • RSI is trending near oversold levels, suggesting bearish momentum but potential for a rebound if buying pressure increases. 3. MACD (12, 26, 9): • The MACD line is below the signal line, indicating continued bearish momentum. No immediate reversal signal is present yet. 4. Volume: • Today’s volume is low at 26,835 shares, which reflects subdued trading activity post-reverse split.

Recent Developments 1. Reverse Split Impact: • The 1-for-5 reverse split effectively increased the stock price by consolidating shares, but the trading activity suggests investors remain cautious. 2. Market Sentiment: • Low volume post-split indicates a lack of strong investor confidence or significant news to drive momentum.

Strengths • Exclusive Tim Hortons Franchisee: Strong growth potential in the Chinese market, leveraging the Tim Hortons brand. • Digital Integration: Focus on app-based orders and delivery aligns with consumer preferences in China. • Market Position: Operates in a high-growth coffee market with increasing urbanization and demand for premium offerings.

Risks 1. Regulatory Challenges: Doing business in China involves navigating complex regulations and potential political tensions. 2. Competition: Intense competition from established players like Starbucks and Luckin Coffee could impact market share. 3. Post-Split Sentiment: Reverse splits often indicate financial instability or struggles to maintain exchange compliance, which could deter investors.

Conclusion

THCH’s reverse stock split was a necessary step to maintain its Nasdaq listing, but low trading volume and bearish technical indicators suggest cautious sentiment. The company’s strong market position in the Chinese coffee space offers potential, but it faces significant competition and operational challenges.

Key Watch Points: • Revenue growth and profitability trends. • Updates on market expansion in China. • Any post-split price stabilization or new announcements to boost investor confidence.