Intuitive Investments Group Reports Progress in Hui10's Chinese Lottery Expansion
Why we think this is neutral
While Hui10's expansion across China shows promise, with targets to operate in 15 provinces by December 2025, there are some financial concerns. The company's cash position has decreased from £1.06 million to £0.73 million, and the NAV per share has slightly declined from 153.9p to 153.2p. The high market capitalization of £25.14B compared to Net Assets of £318.99 million suggests high growth expectations, which could lead to volatility if these expectations are not met. The company's focus on Hui10's growth potential is positive, but execution risks in the Chinese market and the need for continued funding to support the rollout should be considered.
Key Points
- Hui10 operational in three provinces, targeting 15 by December 2025
- Potential access to over 500 million adults in China
- Net Assets increased to £318.99 million from £311.37 million
- NAV per share decreased to 153.2p from 153.9p
- Cash position decreased to £0.73 million from £1.06 million
- Company raised over £10m since October 2023 to support Hui10's rollout
- Giles Willits appointed as new CEO in March 2025
- Company expects to continue raising funds for accelerated rollout
Summary
Intuitive Investments Group's half-year report highlights the progress of its primary investment, Hui10, in expanding its lottery technology across China. Hui10 is currently operational in three provinces and aims to reach 15 provinces by December 2025, potentially accessing over 500 million adults. The company's Net Assets increased slightly to £318.99 million from £311.37 million, but the NAV per share decreased marginally to 153.2p from 153.9p. Cash position decreased to £0.73 million from £1.06 million. The report emphasizes Hui10's potential to generate substantial shareholder returns, but investors should consider the execution risks in the Chinese market and the need for continued funding to support the rollout.