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>Despite the drastic bull turn in Chinese equity sending MNSO’s share 41% from its trough, we see MNSO’s investment in Yonghui Superstores as a risk venture.</li>
<li>We believe the market has overestimated the scalability of the Pangdonglai rectification program for offline retail. </li>
<li>We downgrade the stock to SELL rating and cut TP to US$18/ADS</li>
</ul>


Despite the drastic bull turn in Chinese equity sending MNSO’s share 41% from its trough, we see MNSO’s investment in Yonghui Superstores as a risk venture.
We believe the market has overestimated the scalability of the Pangdonglai rectification program for offline retail. 
We downgrade the stock to SELL rating and cut TP to US$18/ADS


[Miniso (MNSO US, SELL, TP US$18) Rating Change]: We Took Our Stand on Yonghui Acquisition…DG2SELL