External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>3Q25 results were a miss, but that was mostly due to higher delivery costs.</li><li>Even though this is negative on profit in the short run, the impact could be positive in the long run, as Luckin Coffee’s customer retention is much higher than its peers (Cotti’s SSSG in 3Q25 has slowed down massively based on our channel check, while that for Luckin Coffee is not only fast but stable).</li><li>Moreover, we do understand the high base could kick in since 4Q25E and into FY26E, but Luckin Coffee is equipped with many company-specific growth drivers so that its SSSG should still be positive in our view. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

3Q25 results were a miss, but that was mostly due to higher delivery costs.Even though this is negative on profit in the short run, the impact could be positive in the long run, as Luckin Coffee’s customer retention is much higher than its peers (Cotti’s SSSG in 3Q25 has slowed down massively based on our channel check, while that for Luckin Coffee is not only fast but stable).Moreover, we do understand the high base could kick in since 4Q25E and into FY26E, but Luckin Coffee is equipped with many company-specific growth drivers so that its SSSG should still be positive in our view. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Luckin Coffee (LKNCY US) - There Are Still Multiple Growth Drivers in FY26E

Thematic (Sector/Industry)

<ul><li>The consumption trend in Apr 2025 improved MoM across most sub-sectors compared to Mar 2025.</li><li>Numbers during the 2025 5-1 holidays either maintained this trend or further improved, mainly thanks to: 1) a low base, 2) improving weather conditions, 3) longer holidays compared to last year, and 4) fairly robust inbound tourism growth.</li><li>By subsector, apparel and tourism-hotel outperformed our expectations, sportswear and home appliances met expectations, while catering lagged behind. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

The consumption trend in Apr 2025 improved MoM across most sub-sectors compared to Mar 2025.Numbers during the 2025 5-1 holidays either maintained this trend or further improved, mainly thanks to: 1) a low base, 2) improving weather conditions, 3) longer holidays compared to last year, and 4) fairly robust inbound tourism growth.By subsector, apparel and tourism-hotel outperformed our expectations, sportswear and home appliances met expectations, while catering lagged behind. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Consumer Discretionary - Constructive trend in S-R but cautious in L-R

<ul><li>2Q25 results were a beat and the underlying picture, in our view, which was just exceptional, could fuel a decent sales growth in 2H25E.</li><li>However, because the surge in delivery expenses may continue and some subsidies may be provided to the franchisees, OP margin in 2H25E may experience some pressure.</li><li>However, overall speaking, a reasonably fast sales growth (CMBI est. 41%) and NP growth (CMBI est. 43%) in FY25E is still highly possible. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

2Q25 results were a beat and the underlying picture, in our view, which was just exceptional, could fuel a decent sales growth in 2H25E.However, because the surge in delivery expenses may continue and some subsidies may be provided to the franchisees, OP margin in 2H25E may experience some pressure.However, overall speaking, a reasonably fast sales growth (CMBI est. 41%) and NP growth (CMBI est. 43%) in FY25E is still highly possible. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Luckin Coffee (LKNCY US) - Sales Are Booming but Costs Are Also Rising

<ul><li>1Q25 results were a beat, but could be better if not dragged by higher sharebased compensation and effective tax rate.</li><li>Despite the cautious tone of the management, we still feel constructive for the company’s outlook in 2Q25E and the long-term growth.</li><li>Therefore, Luckin Coffee remains one of our sector top picks in 2025. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1Q25 results were a beat, but could be better if not dragged by higher sharebased compensation and effective tax rate.Despite the cautious tone of the management, we still feel constructive for the company’s outlook in 2Q25E and the long-term growth.Therefore, Luckin Coffee remains one of our sector top picks in 2025. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Luckin Coffee (LKNCY US) - Management Is Prudent but Long-Term Story Intact

<ul><li>We believe SSSG and margin expansion in 4Q24 are strong beats and Luckin’s ability to cope with costs inflation has not been fully appreciated by all investors , which may serve as a share price catalyst in the future.</li><li>The stock is trading at 17x FY25E, still undemanding vs peers given its rapid net profit CAGR.</li><li>Positive SSSG was resumed in Dec 2024 and management is confident on gradual improvement (even though ASP may remain stable).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe SSSG and margin expansion in 4Q24 are strong beats and Luckin’s ability to cope with costs inflation has not been fully appreciated by all investors , which may serve as a share price catalyst in the future.The stock is trading at 17x FY25E, still undemanding vs peers given its rapid net profit CAGR.Positive SSSG was resumed in Dec 2024 and management is confident on gradual improvement (even though ASP may remain stable).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Luckin Coffee (LKNCY US) - Turning Around in Styles After the Strong Beat

China

Luckin Coffee Inc. provides non-alcoholic beverages. The Company offers various types of coffee. Luckin Coffee serves customers in China.

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Luckin Coffee (LKNCY US)