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

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Eastroc Beverage Group   / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eastroc-beverage-group-co-ltd" target="_blank" data-smartkarma-citation="entities:34882:1" rel="noopener">Eastroc Beverage Group (605499 CH)</a> (EB), a China-based functional beverage company, aims to raise around US$1bn in its H-share listing.</li>
<li>According to Frost &amp; Sullivan (F&amp;S), EB has been the largest functional beverage company in China in terms of sales volume for four consecutive years since 2021.</li>
<li>In this note, we look at its past performance and other deal dynamics that might impact the listing.</li>
</ul>



Eastroc Beverage Group (605499 CH) (EB), a China-based functional beverage company, aims to raise around US$1bn in its H-share listing.
According to Frost &amp; Sullivan (F&amp;S), EB has been the largest functional beverage company in China in terms of sales volume for four consecutive years since 2021.
In this note, we look at its past performance and other deal dynamics that might impact the listing.


Eastroc Beverage A/H Listing - Energized - Fast Growth, Better Margins

<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

A Value Investing Journal, Acid Investments

Acid Investments

A Value Investing Journal

I love stonks and I love rambling. Sometimes, I feel it unfair to subject those around me with the inundation of my thoughts, so I tweet and I spill ink on here. Jokes aside, I love investing and edgy ideas; I hope to become a better investor and this is my journal to that end. I will be sharing value/special situations I come across organically or through other blogs/13F and I hope to provide a variant analytical view to said situations. I hope to receive constructive feedback and let’s grab some of dem benjamins together!

Equity Bottom-Up

<ul><li>Last week, I wrote a quick article flagging the seemingly absurd valuation discrepancy of Chagee vis-a-vis beverage peers on the HK stock exchange i.e. Mixue and Guming, as well as Luckin Coffee on the OTC markets.</li><li>Chagee currently trades around ~31 (doing extremely poorly on a good day), and at the bottom of its recent trading range; there is no analyst coverage and the firm has yet to report its Q1 25 results so it’s just really stuck in no-man’s land.</li><li>I postulated then that delisting risk was an overhang on Chagee, a Chinese ADR, but lo and behold, it appears that the market has shrugged off a large portion of it for the large cap Chinese tech companies.</li></ul>

Last week, I wrote a quick article flagging the seemingly absurd valuation discrepancy of Chagee vis-a-vis beverage peers on the HK stock exchange i.e. Mixue and Guming, as well as Luckin Coffee on the OTC markets.Chagee currently trades around ~31 (doing extremely poorly on a good day), and at the bottom of its recent trading range; there is no analyst coverage and the firm has yet to report its Q1 25 results so it’s just really stuck in no-man’s land.I postulated then that delisting risk was an overhang on Chagee, a Chinese ADR, but lo and behold, it appears that the market has shrugged off a large portion of it for the large cap Chinese tech companies.

Part 2: What Could Go Wrong at Chagee (CHA)

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
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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

Eastroc Beverage A/H Listing - Energized - Fast Growth, Better Margins

Eastroc Beverage Group (605499 CH) (EB), a China-based functional beverage company, aims to raise around US$1bn in its H-share listing. In this...

Sumeet Singh

[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

Part 2: What Could Go Wrong at Chagee (CHA)

Chagee currently trades around ~31 (doing extremely poorly on a good day), and at the bottom of its recent trading range; there is no analyst...

Acid Investments

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

Eastroc Beverage A/H Listing - Energized - Fast Growth, Better Margins

Eastroc Beverage Group (605499 CH) (EB), a China-based functional beverage company, aims to raise around US$1bn in its H-share listing. In this...

Sumeet Singh

[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

Part 2: What Could Go Wrong at Chagee (CHA)

Chagee currently trades around ~31 (doing extremely poorly on a good day), and at the bottom of its recent trading range; there is no analyst...

Acid Investments

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...