Hui10, IIG’s largest investment, has inked a landmark agreement for unique rights to promote Team China merchandise through its dedicated lottery shops and HongBao Sports Lottery. According to Sir Nigel Rudd, Chairman of IIG, the partnership demonstrates how Hui10 can connect communities, improve the retail experience and contribute to the growth of national sports. Hui10 is digitising the US$72bn Chinese national lottery, the second largest in the world. We leave estimates unchanged but remind that a successful roll-out sees Hui10 generate c.£1bn EBIT by 2030E. Our view is unchanged: IIG shareholders have a substantial opportunity from the asset-light, cash-generative Hui10 business. We see a significant valuation opportunity, with an intrinsic value of 900p based on DCF (909p), FCF yield (822p) and a peer review (968p) – see our initiation.
Intuitive Investments Group: Progressive
Jan 21, 2025Disclaimer & Declaration of Interest
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