Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/luckin-coffee-inc" target="_blank" data-smartkarma-citation="entities:28046:1" rel="noopener">Luckin Coffee (LKNCY US)</a> reported another quarter of strong growth and is now China’s leading coffee chain by a wide margin with operating margins outperforming even premium rival <a href="https://www.smartkarma.com/entities/starbucks-corp" target="_blank" data-smartkarma-citation="entities:7641:1" rel="noopener">Starbucks Corp(SBUX US)</a> .</li>
<li>Luckin’s disruptive model—centered on affordability, convenience, and accessibility—and the competition that followed has fueled a 2.5X rise in China’s per capita coffee consumption over the past five years.</li>
<li>​Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer preference for convenience and digital experiences.</li>
</ul>



Luckin Coffee (LKNCY US) reported another quarter of strong growth and is now China’s leading coffee chain by a wide margin with operating margins outperforming even premium rival Starbucks Corp(SBUX US) .
Luckin’s disruptive model—centered on affordability, convenience, and accessibility—and the competition that followed has fueled a 2.5X rise in China’s per capita coffee consumption over the past five years.
​Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer preference for convenience and digital experiences.


Luckin Coffee: Acing It in China's Racing Coffee Market

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Starbucks recently reported disappointing fourth-quarter results, with earnings and revenue falling short of analysts’ expectations due to lackluster sales in its core markets, the U.S. and China.</li><li>CEO Brian Niccol, who took the helm in September, has pledged swift action to address the challenges the company faces, with a clear emphasis on reshaping Starbucks’ operational strategy.</li><li>He aims to attract customers back by implementing a new plan that includes faster service, with a target of delivering drinks within four minutes, and restoring the familiar condiment bars that were removed during the pandemic.</li></ul>

Starbucks recently reported disappointing fourth-quarter results, with earnings and revenue falling short of analysts’ expectations due to lackluster sales in its core markets, the U.S. and China.CEO Brian Niccol, who took the helm in September, has pledged swift action to address the challenges the company faces, with a clear emphasis on reshaping Starbucks’ operational strategy.He aims to attract customers back by implementing a new plan that includes faster service, with a target of delivering drinks within four minutes, and restoring the familiar condiment bars that were removed during the pandemic.

Starbucks in Trouble? Inside the CEO’s Radical Strategy to Win Back Customers

<ul><li>Starbucks, the global coffee giant, has taken a bold step by appointing Brian Niccol, the former CEO of Chipotle, as its new leader.</li><li>This move follows the sudden departure of Laxman Narasimhan, whose tenure saw a significant drop in Starbucks' share value, raising questions about the company's future direction.</li><li>Niccol, credited with turning around Chipotle after its foodborne illness crisis, brings a reputation for innovation and effective leadership.</li></ul>

Starbucks, the global coffee giant, has taken a bold step by appointing Brian Niccol, the former CEO of Chipotle, as its new leader.This move follows the sudden departure of Laxman Narasimhan, whose tenure saw a significant drop in Starbucks' share value, raising questions about the company's future direction.Niccol, credited with turning around Chipotle after its foodborne illness crisis, brings a reputation for innovation and effective leadership.

Starbucks Gambles on New CEO: Will Niccol Turn the Tide or Spill the Beans?

<ul><li>Examining Starbucks Corporation's third quarter fiscal year 2024 earnings, a balanced perspective highlights both strengths and areas for improvement.</li><li>The global coffee giant reported a mild revenue increase to $9.1 billion, marking a 1% year-over-year growth and a 6% sequential rise from the second quarter.</li><li>However, global comparable store sales declined by 3%, influenced by a notable 14% decrease in China, despite a relatively steady performance in Japan and modest declines in North America.</li></ul>

Examining Starbucks Corporation's third quarter fiscal year 2024 earnings, a balanced perspective highlights both strengths and areas for improvement.The global coffee giant reported a mild revenue increase to $9.1 billion, marking a 1% year-over-year growth and a 6% sequential rise from the second quarter.However, global comparable store sales declined by 3%, influenced by a notable 14% decrease in China, despite a relatively steady performance in Japan and modest declines in North America.

Starbucks Corporation: Expanded Digital Offerings & Rewards Program Growth & Other Major Drivers

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

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.

<ul>
<li>Xiaomi’s global market increased to 15% in 2Q24 compared with 13% in 2Q23.</li>
<li>GAC Aion began to be produced in Thailand to bypass the new tariff barriers from the US and the European Union.</li>
<li>Cotti Coffee plans to extend its “RMB9.90” sales to three years.</li>
</ul>


Xiaomi’s global market increased to 15% in 2Q24 compared with 13% in 2Q23.
GAC Aion began to be produced in Thailand to bypass the new tariff barriers from the US and the European Union.
Cotti Coffee plans to extend its “RMB9.90” sales to three years.


China Consumption Weekly (2024 Jul 22): Xiaomi, Guangzhou Automobile, NIO, AAPL, Starbucks

United States

Starbucks Corporation retails, roasts, and provides its own brand of specialty coffee. The Company operates retail locations worldwide and sells whole bean coffees through its sales group, direct response business, supermarkets, and on the World Wide Web. Starbucks also produces and sells bottled coffee drinks and a line of ice creams.

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Starbucks Corp (SBUX US)

Luckin Coffee: Acing It in China's Racing Coffee Market

Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer...

Devi Subhakesan

Starbucks in Trouble? Inside the CEO’s Radical Strategy to Win Back Customers

Starbucks recently reported disappointing fourth-quarter results, with earnings and revenue falling short of analysts’ expectations due to...

Baptista Research

Starbucks Gambles on New CEO: Will Niccol Turn the Tide or Spill the Beans?

Starbucks, the global coffee giant, has taken a bold step by appointing Brian Niccol, the former CEO of Chipotle, as its new leader. This move...

Baptista Research

Starbucks Corporation: Expanded Digital Offerings & Rewards Program Growth & Other Major Drivers

Examining Starbucks Corporation's third quarter fiscal year 2024 earnings, a balanced perspective highlights both strengths and areas for...

Baptista Research

China Consumption Weekly (2024 Jul 22): Xiaomi, Guangzhou Automobile, NIO, AAPL, Starbucks

Xiaomi’s global market share increased to 15% in 2Q24 from 13% in 2Q23. GAC Aion began to produce in Thailand. Cotti Coffee extended its sales to...

Ming Lu

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Luckin Coffee: Acing It in China's Racing Coffee Market

​Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer...

Devi Subhakesan

Starbucks in Trouble? Inside the CEO’s Radical Strategy to Win Back Customers

Starbucks recently reported disappointing fourth-quarter results, with earnings and revenue falling short of analysts’ expectations due to...

Baptista Research

Starbucks Gambles on New CEO: Will Niccol Turn the Tide or Spill the Beans?

Starbucks, the global coffee giant, has taken a bold step by appointing Brian Niccol, the former CEO of Chipotle, as its new leader. This move...

Baptista Research

Starbucks Corporation: Expanded Digital Offerings & Rewards Program Growth & Other Major Drivers

Examining Starbucks Corporation's third quarter fiscal year 2024 earnings, a balanced perspective highlights both strengths and areas for...

Baptista Research

China Consumption Weekly (2024 Jul 22): Xiaomi, Guangzhou Automobile, NIO, AAPL, Starbucks

Xiaomi’s global market share increased to 15% in 2Q24 from 13% in 2Q23. GAC Aion began to produce in Thailand. Cotti Coffee extended its sales to...

Ming Lu

Luckin Coffee's strong growth, high operating margins, dominant market share contrasts with Starbucks, which is now adapting to changing customer...