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

[Luckin (LKNCY US, SELL, TP US$17) Rating Change]: Old Tricks Might Have Run Out of Its Use

[Luckin Coffee (LKNCY US, SELL, TP US$16.5) TP Change]: Milkteaization Diminishes Differentiation

Luckin's Small Step into Non-Coffee Drinks Is a Big Step of Its Future Directions

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

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 C3Q24 revenue 9.8%/6.3% higher than our estimate/consensus, and non-GAAP operating profit 26%/28% higher than our estimate/consensus. </li>
<li>In the short term, Luckin managed to raise price without trigger consumer departure, and may do so for a few more quarters. </li>
<li>We put the TP and the rating under review pending further assessment of US market entry.</li>
</ul>


Luckin reported C3Q24 revenue 9.8%/6.3% higher than our estimate/consensus, and non-GAAP operating profit 26%/28% higher than our estimate/consensus. 
In the short term, Luckin managed to raise price without trigger consumer departure, and may do so for a few more quarters. 
We put the TP and the rating under review pending further assessment of US market entry.


[Luckin Coffee Inc. (LKNCY US, UR) Earnings Review]: Operational Turnaround, Now All Eyes on Growth