China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Thematic (Sector/Industry)

<ul>
<li>LKNCY: Luckin Coffee opened No.10k store, and extended discount coupon coverage (-)</li>
<li>U US: Apple provides Unity with unique development privileges for Vision Pro (+)</li>
<li>CPNG US: a congestion in the customs clearance process at Pyeongtaek Port due to a surge in packages from Chinese e-commerce platforms.(-)</li>
</ul>


LKNCY: Luckin Coffee opened No.10k store, and extended discount coupon coverage (-)
U US: Apple provides Unity with unique development privileges for Vision Pro (+)
CPNG US: a congestion in the customs clearance process at Pyeongtaek Port due to a surge in packages from Chinese e-commerce platforms.(-)


China/Asia TMT Update- Luckin/Unity/Coupang:No.10k Store, Apple Vision Pro, Congestion at Pyeongtaek

<ul>
<li>PDD: Pinduoduo starts its "618 Opening Red" campaign, investing 5 billion RMB and offering subsidies for 4 consecutive days</li>
<li>Tencent: Streamers and players indicate that there have been a large number of AI-controlled bots appearing in the matches of the game "Honor of Kings".</li>
<li>LKNCY: COTTI Coffee opened its No.3000 stores, and Luckin Coffee is going to open its No.10k store.(/)</li>
</ul>


PDD: Pinduoduo starts its "618 Opening Red" campaign, investing 5 billion RMB and offering subsidies for 4 consecutive days
Tencent: Streamers and players indicate that there have been a large number of AI-controlled bots appearing in the matches of the game "Honor of Kings".
LKNCY: COTTI Coffee opened its No.3000 stores, and Luckin Coffee is going to open its No.10k store.(/)


China TMT Update June 2 - PDD/700.HK/LKNCY: Pinduoduo Starts "618 " Campaign, Investing 5 Bn RMB

Equity Bottom-Up

<ul>
<li>Cotti Coffee has become a head-to-head competitor of Mixue’s Lucky Cup, and to a lesser degree, Luckin. </li>
<li>But what is behind Cotti’s agenda, in our view, is its founder Charles Lu’s aspiration to return to Luckin;</li>
<li>The biggest obstacle for Charles to repeat the playbook of Steve Jobs is Chinese security regulator’s refusal, so far, to allow franchised chain to list</li>
</ul>


Cotti Coffee has become a head-to-head competitor of Mixue’s Lucky Cup, and to a lesser degree, Luckin. 
But what is behind Cotti’s agenda, in our view, is its founder Charles Lu’s aspiration to return to Luckin;
The biggest obstacle for Charles to repeat the playbook of Steve Jobs is Chinese security regulator’s refusal, so far, to allow franchised chain to list


[Luckin Coffee Inc. (LKNCY US) Company Update]: Is Cotti Coffee Charles Lu’ NeXT Computer?

<ul>
<li>NTES: Justice Mobile launches 2nd round of closed beta test (-)</li>
<li>PDD: PDD announces RMB 4bn in subsidies for annual May 5th Shopping Festival (+)</li>
<li>LKNCY/2150HK/ATAT: Labor Day holiday Tourism consumption recovered to pre-covid level in labor day holiday, and catering sector is leading the retail recovery trend.(+)</li>
</ul>


NTES: Justice Mobile launches 2nd round of closed beta test (-)
PDD: PDD announces RMB 4bn in subsidies for annual May 5th Shopping Festival (+)
LKNCY/2150HK/ATAT: Labor Day holiday Tourism consumption recovered to pre-covid level in labor day holiday, and catering sector is leading the retail recovery trend.(+)


China TMT Update (May 5-Pt1): NTES/PDD/LKNCY/2150HK/ATAT：Justice Mobile Launches 2nd Round Test

<ul>
<li>Luckin Coffee 1Q23 revenue beat is due to higher-than-expected store expansion, while SSSG is in-line with our estimate. </li>
<li>The normalized of RMB9.9 per cup campaign is expected to generate minor impact on Luckin Coffee’s profitability. </li>
<li>We maintain the stock as BUY and maintain TP at US$41.</li>
</ul>


Luckin Coffee 1Q23 revenue beat is due to higher-than-expected store expansion, while SSSG is in-line with our estimate. 
The normalized of RMB9.9 per cup campaign is expected to generate minor impact on Luckin Coffee’s profitability. 
We maintain the stock as BUY and maintain TP at US$41.


[Luckin Coffee (LKNCY US, BUY, TP US$41) Earnings Review]: Price War Will Work to Luckin’s Advantage

China

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

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Luckin Coffee (LKNCY US)

China/Asia TMT Update- Luckin/Unity/Coupang:No.10k Store, Apple Vision Pro, Congestion at Pyeongtaek

LKNCY: Luckin Coffee opened No.10k store (-)；U US: Apple provides Unity with unique development privileges for Vision Pro (+)；CPNG US: a congestion...

Blue Lotus Research Institute

China TMT Update June 2 - PDD/700.HK/LKNCY: Pinduoduo Starts "618 " Campaign, Investing 5 Bn RMB

PDD: Pinduoduo starts "618 Opening Red" campaign；Tencent: a large number of AI-controlled bots in "Honor of Kings"；LKNCY: COTTI Coffee opened...

Blue Lotus Research Institute

[Luckin Coffee Inc. (LKNCY US) Company Update]: Is Cotti Coffee Charles Lu’ NeXT Computer?

Cotti Coffee has become a head-to-head competitor of Mixue’s Lucky Cup, and to a lesser degree, Luckin. What is behind Cotti’s agenda is its...

Blue Lotus Research Institute

China TMT Update (May 5-Pt1): NTES/PDD/LKNCY/2150HK/ATAT：Justice Mobile Launches 2nd Round Test

Labor Day holiday Tourism consumption recovered.(+) NTES: Justice Mobile launches 2nd round of closed beta test (-) PDD: PDD announces RMB 4bn in...

Blue Lotus Research Institute

[Luckin Coffee (LKNCY US, BUY, TP US$41) Earnings Review]: Price War Will Work to Luckin’s Advantage

Luckin Coffee reported its 1Q23 revenue 4.2% higher than our estimate. The revenue beat is due to higher-than-expected store expansion, while SSSG...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)