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 Coffee Inc. (LKNCY US) Earnings Review]: A Few Bright Spots in a Transactional Quarter

[Luckin Coffee Inc. (LKNCY US) TP Change]: Strong New Product Sales Driving Seasonality Rebound

[Luckin Coffee Inc. (LKNCY US, BUY, TP US$41) ]: Temporary Price Competition Has No Impact on Margin

Tougher Chinese Regulatory Oversight of Foreign Listed Chinese Companies (With Caveats)

Luckin Coffee - Restatement of 2019 Financials and Key Observations

Forensics 101 - Revenue Recognition Shenanigans and Key Detection Metrics

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

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>We initiated Luckin with a BUY with TP $40 because we believe Luckin is a rising challenger in a rising market, half way through a rising business model; </li>
<li>We see room for Luckin to expand transaction frequency and transacting customers before expanding ASP in order to drive same store sales;</li>
<li>In the long run, we see coffee + western bakery to gain market share over tea house + Chinese dim sum in the snack + breakfast market. </li>
</ul>


We initiated Luckin with a BUY with TP $40 because we believe Luckin is a rising challenger in a rising market, half way through a rising business model; 
We see room for Luckin to expand transaction frequency and transacting customers before expanding ASP in order to drive same store sales;
In the long run, we see coffee + western bakery to gain market share over tea house + Chinese dim sum in the snack + breakfast market. 


Luckin(LKNCY.US) Initiation: Rising Challenger, Market and Business Model