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

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

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

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Our 1H23 revenue estimate is 8.7% lower than consensus, and we expect 1H23 NPM at breakeven vs. consensus at 5%。</li>
<li>Mainly because teahouse brands in China had suffered the intensified competition from the price war in Coffee industry.</li>
<li>We maintain the stock as BUY rating as the margin improvement process is gradual showing effect, while we lower TP by US$2 to US$9.3 to reflect the intensified competition pressure.</li>
</ul>


Our 1H23 revenue estimate is 8.7% lower than consensus, and we expect 1H23 NPM at breakeven vs. consensus at 5%。
Mainly because teahouse brands in China had suffered the intensified competition from the price war in Coffee industry.
We maintain the stock as BUY rating as the margin improvement process is gradual showing effect, while we lower TP by US$2 to US$9.3 to reflect the intensified competition pressure.


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