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

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Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

Equity Bottom-Up

<ul>
<li>Luckin reported C2Q25 revenue 9%/11% higher than our est./cons., and non-GAAP OP 37%/17% higher than our est./cons., driven by the extra demand from food delivery platforms' promotional campaigns. </li>
<li>As we now expect the food delivery war to persist, we raise Luckin's C2H25 revenue/OP estimate by 6%/18% and raise the TP to US$45.</li>
<li>Luckin, however, managed margin and expenses well to deliver the profit beat;</li>
</ul>


Luckin reported C2Q25 revenue 9%/11% higher than our est./cons., and non-GAAP OP 37%/17% higher than our est./cons., driven by the extra demand from food delivery platforms' promotional campaigns. 
As we now expect the food delivery war to persist, we raise Luckin's C2H25 revenue/OP estimate by 6%/18% and raise the TP to US$45.
Luckin, however, managed margin and expenses well to deliver the profit beat;


[Luckin Coffee (LKNCY US, BUY, TP US$45) TP Change]:Solid Execution Showcases Consolidator Potential