We initiate coverage on Intuitive Investments Group plc (IIG), a closed-end investment fund. IIG’s largest investment is Hui10, which is digitising the US$72bn Chinese national lottery (the second largest in the world). Success would see Hui10 generate c.£1bn EBIT by 2030E from its two divisions: Huishi Dehua has developed the software platform to digitise the lottery, while Lucky World transforms retail for 200k lottery shops and their 100m customers.
We initiate coverage on (IIG ), a closed-end investment fund. IIG’s largest investment is Hui10, which is digitising the US$72bn Chinese national lottery (the second largest in the world). Success would see Hui10 generate c.£1bn EBIT by 2030E from its two divisions: Huishi Dehua has developed the software platform to digitise the lottery, while Lucky World transforms retail for 200k lottery shops and their 100m customers. A TAM of 1.1bn adults ensures a dramatic scale-up opportunity to grow revenue, earnings and cash. IIG shareholders have a substantial opportunity from the asset-light, cash-generative Hui10 business where success is also good for the Chinese state’s official lottery issuers, the Welfare Fund and Sports Developments Fund, and the many state-owned enterprise partners enfranchised into the lottery sector by Hui10.
