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

[Nayuki (2150 HK, BUY, TP HK$9.3) TP Change]: Store Operating Profit Margin Improvement On-Track

Nayuki (2150 HK) Rating Change: Broaden Addressable Market Is Priority No.1

Nayuki Holdings Limited (2150 HK) – Acquiring LELECHA at a Bargain Price

Nayuki Holdings Limited (2150 HK) – Breakeven Achieved with More Flexible Costing

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Nayuki reported C2H22 top line 0.9% below our estimate but 18% below consensus，due to deteriorating cost ratios; </li>
<li>Company chose to drastically expand store count by ~600 in 2023. Our concern is that Nayuki stores now are drastically different from its past.</li>
<li>The company is abandoning its premium teahouse position, which begets unknown consequences in our opinion; We keep the TP unchanged at HK 3.1 and maintain SELL.</li>
</ul>


Nayuki reported C2H22 top line 0.9% below our estimate but 18% below consensus，due to deteriorating cost ratios; 
Company chose to drastically expand store count by ~600 in 2023. Our concern is that Nayuki stores now are drastically different from its past.
The company is abandoning its premium teahouse position, which begets unknown consequences in our opinion; We keep the TP unchanged at HK 3.1 and maintain SELL.


[Nayuki Holding (2150 HK) Target Price Change]: Business Model Change Has Risky Consequence