Luckin Coffee(US:LKNCY) SINOLINK SECURITIES·2025-07-31 15:40Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported Q2 revenue of 12.359 billion RMB, a year-over-year increase of 47.1%, with self-operated store revenue up 45.6% and franchise revenue up 55.0% [2]. - GAAP net profit for Q2 was 1.251 billion RMB, a year-over-year increase of 43.6%, with a profit margin of 10.1% [2]. - Non-GAAP net profit reached 1.399 billion RMB, up 44.0% year-over-year, with a profit margin of 11.3% [2]. - The company experienced strong operational metrics, benefiting from delivery platform subsidies, with same-store sales up 13.4% and monthly active users reaching 91.7 million, a year-over-year increase of 31.6% [3]. - The company accelerated its store openings, adding 2,109 new stores in Q2, bringing the total to 26,206 stores [3]. - The overall gross margin improved by 2.86 percentage points year-over-year, although fulfillment costs increased, impacting operating profit margin [4]. - The actual tax rate for Q2 was 29.76%, with a GAAP operating profit margin of 13.8%, reflecting healthy business performance [4]. - The forecast for Non-GAAP net profit for FY2025, FY2026, and FY2027 has been adjusted to 4.401 billion RMB, 5.516 billion RMB, and 6.999 billion RMB respectively, with corresponding adjusted PE ratios of 20, 16, and 13 [5].