Investment Rating - The report assigns an "Outperform" rating to Luckin Coffee, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark by more than 10% [14]. Core Insights - Luckin Coffee reported a revenue of RMB 12.4 billion for Q2, representing a year-on-year growth of 47%. The adjusted net profit reached RMB 1.4 billion, up 44% year-on-year [5][2]. - The company continues to focus on market share and scale growth, with an average monthly transacting customer count of 91.7 million, a 32% increase year-on-year. The total number of stores reached 26,206, with a net increase of 2,109 stores quarter-on-quarter [5][1]. - The company is expanding its international presence, with new stores opening in Singapore and New York, marking a significant step in its internationalization strategy [1][2]. Financial Performance - Directly operated stores generated revenue of RMB 9.14 billion, a 46% increase year-on-year, with same-store sales growth of 13.4% [1][2]. - Franchise stores contributed RMB 2.87 billion in revenue, reflecting a 55% year-on-year increase, driven by significant growth in delivery fees due to participation in delivery platform subsidy activities [1][2]. - The adjusted operating profit was RMB 1.85 billion, a 61% increase year-on-year, with an adjusted operating profit margin of 15%, up 1.3 percentage points year-on-year [2][1]. Future Outlook - The company aims to continue expanding market share and maintain a high pace of store openings to capitalize on growing consumer demand, achieving rapid revenue growth [3][6]. - Luckin Coffee plans to leverage scale advantages and operational efficiency to offset the impact of delivery fee fluctuations, thereby sustaining relatively stable profitability [3][6].