HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>China's tea sector has attracted increased interest, but the share prices are volatile. Overall valuations do not look cheap, and the key is stock picking.</li>
<li>
<a href="https://www.smartkarma.com/entities/auntea-jenny-shanghai-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:40891:1" rel="noopener">Auntea Jenny (Shanghai) Industrial (2589 HK)</a> nd <a href="https://www.smartkarma.com/entities/mixue-group" target="_blank" data-smartkarma-citation="entities:40623:1" rel="noopener">Mixue Group (2097 HK)</a> are expensive on both PEG and P/B vs. ROE perspectives.</li>
<li>In two years, <a href="https://www.smartkarma.com/entities/sichuan-baicha-baidao-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:40029:1" rel="noopener">Sichuan Baicha Baidao Industrial (2555 HK)</a>, <a href="https://www.smartkarma.com/entities/chagee-holdings-limited" target="_blank" data-smartkarma-citation="entities:45011:1" rel="noopener">Chagee Holdings (CHA US)</a>, and <a href="https://www.smartkarma.com/entities/nayuki-holdings" target="_blank" data-smartkarma-citation="entities:32149:1" rel="noopener">Nayuki Holdings (2150 HK)</a> will turn even cheaper.</li>
</ul>


China's tea sector has attracted increased interest, but the share prices are volatile. Overall valuations do not look cheap, and the key is stock picking.

Auntea Jenny (Shanghai) Industrial (2589 HK) nd Mixue Group (2097 HK) are expensive on both PEG and P/B vs. ROE perspectives.
In two years, Sichuan Baicha Baidao Industrial (2555 HK), Chagee Holdings (CHA US), and Nayuki Holdings (2150 HK) will turn even cheaper.


Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

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

<ul>
<li>LKNCY US: Luckin coffee launches RMB 6.9/ Cup Coupons (-) </li>
<li>1810 HK: Xiaomi Auto Expected to Turn Profitable in 3Q-4Q25(+)</li>
<li>New Energy Vehicle: China Major Automakers May 2025 Sales Summary(-)</li>
</ul>


LKNCY US: Luckin coffee launches RMB 6.9/ Cup Coupons (-) 
1810 HK: Xiaomi Auto Expected to Turn Profitable in 3Q-4Q25(+)
New Energy Vehicle: China Major Automakers May 2025 Sales Summary(-)


[Blue Lotus Daily]:LKNCY US/1810 HK/New Energy Vehicle

<ul>
<li>1211 HK: BYD’s New K-Car Spotted in Spy Shots (+)</li>
<li>1211 HK/ZK US/AITO: Week 19 (May 5–11, 2025) Sales Rankings(+/+/+)</li>
<li>LKNCY US: Mixue Group Signs RMB4 Billion Brazil Coffee Bean Purchase Deal(-)</li>
</ul>


1211 HK: BYD’s New K-Car Spotted in Spy Shots (+)
1211 HK/ZK US/AITO: Week 19 (May 5–11, 2025) Sales Rankings(+/+/+)
LKNCY US: Mixue Group Signs RMB4 Billion Brazil Coffee Bean Purchase Deal(-)


[Blue Lotus Daily]:1211 HK/ZK US/AITO/LKNCY US

<ul>
<li>BEKE US: Post-May Holiday Slowdown in Existing Home Transactions, Stabilized New Home Sales. (/)</li>
<li>1810 HK : Several Xiaomi Car Owners Demand Refunds (-)</li>
<li>ZK US: Zeekr Launches Channel Reform, Introduces Agent-Based Partnership Model(+)</li>
</ul>


BEKE US: Post-May Holiday Slowdown in Existing Home Transactions, Stabilized New Home Sales. (/)
1810 HK : Several Xiaomi Car Owners Demand Refunds (-)
ZK US: Zeekr Launches Channel Reform, Introduces Agent-Based Partnership Model(+)


[Blue Lotus Daily]:BEKE US/1810 HK/ZK US/LKNCY US/Macro/New Energy Vehicles

<ul>
<li>The market reflects on Trump's economic policy to find the rationale behind. Our issue with Steven Miran's proposal of strong -tariff/weak-dollar is whether it will bring back manufacturing to USA; </li>
<li>Child birth policy from the capital of Inner-Mongolia could boost consumption and cost the country only Rmb100bn a year; </li>
<li>BYD launches 1,000 V super charge. Xiaomi and XPEV talking about overseas expansion. LI Auto guided C1Q25 sharply lower.</li>
</ul>


The market reflects on Trump's economic policy to find the rationale behind. Our issue with Steven Miran's proposal of strong -tariff/weak-dollar is whether it will bring back manufacturing to USA; 
Child birth policy from the capital of Inner-Mongolia could boost consumption and cost the country only Rmb100bn a year; 
BYD launches 1,000 V super charge. Xiaomi and XPEV talking about overseas expansion. LI Auto guided C1Q25 sharply lower.


[Blue Lotus China New Consumer Weekly, 11/52] Our First Read of Trumponomics

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
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Luckin Coffee (LKNCY US)

China Tea Sector: What to Buy and Sell?

China's tea sector is attracting interest, but stock picking is key. Auntea Jenny and Mixue Group are expensive, while Chabaidao, Chagee, and...

Osbert Tang, CFA

[Blue Lotus Daily]:LKNCY US/1810 HK/New Energy Vehicle

Luckin Coffee offers discounted coupons, Xiaomi Auto is projected to become profitable in late 2025, and Chinese automakers face challenges in the...

Blue Lotus Research Institute

[Blue Lotus Daily]:1211 HK/ZK US/AITO/LKNCY US

BYD's new K-Car spotted in spy shots, Mixue Group signs RMB4 billion Brazil coffee bean purchase deal, and sales rankings for Week 19 of 2025 are...

Blue Lotus Research Institute

[Blue Lotus Daily]:BEKE US/1810 HK/ZK US/LKNCY US/Macro/New Energy Vehicles

Post-holiday slowdown in existing home transactions but stabilized new home sales; Xiaomi car owners demand refunds; Zeekr launches channel reform...

Blue Lotus Research Institute

[Blue Lotus China New Consumer Weekly, 11/52] Our First Read of Trumponomics

Analysis of Trump's economic policy, Inner-Mongolia's child birth policy, and updates on BYD, Xiaomi, XPEV, and LI Auto in the market.

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Tea Sector: What to Buy and Sell?

​China's tea sector is attracting interest, but stock picking is key. Auntea Jenny and Mixue Group are expensive, while Chabaidao, Chagee, and...

Osbert Tang, CFA

[Blue Lotus Daily]:LKNCY US/1810 HK/New Energy Vehicle

​Luckin Coffee offers discounted coupons, Xiaomi Auto is projected to become profitable in late 2025, and Chinese automakers face challenges in the...

Blue Lotus Research Institute

[Blue Lotus Daily]:1211 HK/ZK US/AITO/LKNCY US

​BYD's new K-Car spotted in spy shots, Mixue Group signs RMB4 billion Brazil coffee bean purchase deal, and sales rankings for Week 19 of 2025 are...

Blue Lotus Research Institute

[Blue Lotus Daily]:BEKE US/1810 HK/ZK US/LKNCY US/Macro/New Energy Vehicles

​Post-holiday slowdown in existing home transactions but stabilized new home sales; Xiaomi car owners demand refunds; Zeekr launches channel reform...

Blue Lotus Research Institute

[Blue Lotus China New Consumer Weekly, 11/52] Our First Read of Trumponomics

​Analysis of Trump's economic policy, Inner-Mongolia's child birth policy, and updates on BYD, Xiaomi, XPEV, and LI Auto in the market.

Blue Lotus Research Institute

China's tea sector is attracting interest, but stock picking is key. Auntea Jenny and Mixue Group are expensive, while Chabaidao, Chagee, and...

Luckin Coffee offers discounted coupons, Xiaomi Auto is projected to become profitable in late 2025, and Chinese automakers face challenges in the...

BYD's new K-Car spotted in spy shots, Mixue Group signs RMB4 billion Brazil coffee bean purchase deal, and sales rankings for Week 19 of 2025 are...

Post-holiday slowdown in existing home transactions but stabilized new home sales; Xiaomi car owners demand refunds; Zeekr launches channel reform...

Analysis of Trump's economic policy, Inner-Mongolia's child birth policy, and updates on BYD, Xiaomi, XPEV, and LI Auto in the market.