The 720: Luckin Coffee & Chagee initiations, China Strategy, Fujikura, Global Smartphones, Ajinomoto, Jardine Matheson, KB Financial, Ebara

Research evidence excerpt

The 720: Luckin Coffee & Chagee initiations, China Strategy, Fujikura, Global Smartphones, Ajinomoto, Jardine Matheson, KB Financial, Ebara

Equity Research

22 June 2026 | 7:21AM HKT

The 720: Luckin Coffee & Chagee initiations, China Strategy, Fujikura,

Global Smartphones, Ajinomoto, Jardine Matheson, KB Financial, Ebara

In Focus | Luckin Coffee & Chagee initiations Michael Snaith

+852-2978-0455 |

michael.snaith@gs.com

Luckin Coffee – Clear growth path in ML China – Initiate at Buy. We initiate coverage Goldman Sachs (Asia) L.L.C.

with a 12m TP of US$49, forecasting 19% and 26% revenue and non-GAAP net profit Caleb Chan

+852-2978-0790 | caleb.chan@gs.com

CAGRs for 2025 to 2028. We believe there remains a meaningful opportunity to Goldman Sachs (Asia) L.L.C.

expand in mainland China, where our analysis suggests a 55,000 store count is

attainable, supported by the company’s strong moat in scale and digital capabilities.

We also see further room for margin expansion, expecting non-GAAP operating

margins to reach 14% by 2028 driven by normalized delivery subsidies, lower

per-order delivery costs, and store operating efficiencies. Additionally, with

accumulated deficits turning into accumulated gains in 2026 alongside healthy free

cash flow generation, we see a strong upside opportunity in future shareholder

returns. Xinyu Ruan

Chagee Holdings – Searching for the next growth engine – Initiate at Neutral. We

initiate coverage with a 12m TP of US$13.6, as we see limited room for further store

expansion in China and lingering same-store sales growth pressure. While an easier

base and cost controls should limit near-term earnings downside, the company’s

premium positioning and narrow tea-latte focus leave it less well-placed to capture

shifting consumer preferences.