Meituan 3690 02 (Jun 23 - Dec 27)

[winston]

vested

Meituan bucks slowdown, doubles earnings

Net profit more than double to 16.72 billion yuan (HK$18.3 billion) from a year ago as it posted a bigger-than-expected 21 percent rise in second-quarter revenue at 82.3 billion yuan, compared with an 80.4 billion yuan projection.

Its total segment operating profit for the second quarter increased from 5.9 billion yuan to 13.9 billion yuan, and the total segment operating margin increased from 8.7 percent to 16.9 percent.

Revenue from core local commerce, which includes food delivery and non-food delivery service Meituan Instashopping, rose 18.5 percent to 60.7 billion yuan.

Sales from the new initiatives segment, which includes its community group-buying arm, grew by 28.7 percent year-over-year to 21.6 billion yuan, with the operating loss narrowing by 74.7 percent to 1.3 billion yuan from the previous year.

Source: AP

https://www.thestandard.com.hk/section- ... s-earnings

[winston]

vested

Meituan (3690 HK) 2Q24: Solid Earnings Beat;

Margin Improvement On Stabilised Competition

Meituan delivered better-than-expected 2Q24 results.

Total revenue grew 21% yoy to Rmb82.3b, in line with our and the street’s estimate.

Non-IFRS net profit was Rmb13.6b, with net profit margin expanding 5ppt yoy to 17%, above consensus estimate.

For 2024, we are optimistic on Meituan as it should:
a) be on track to achieve its Rmb1t GTV target for 2024,
b) be primarily focused on profitability, and
c) see solid travel demand momentum.

Maintain BUY with a higher target price of HK$169.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

vested

Broker│Opinion

UBS│2Q revenue growth improved QoQ, delivery operating profit margin expected to rise to 32% this year

Goldman Sachs│2Q earnings growth strongly beat, higher outlook for food delivery and core margins

Citi│2Q revenue and profit growth beat, strong core local commercial revenue growth driven by product innovation, subsidies and cost optimisation

CMS International│Beating expectations through continuous efficiency improvement
Jefferies│2Q revenue and non-IFRS adjusted profit growth beat, raised outlook for
core local commercial revenue and operating profit

Daiwa│2Q core earnings growth strongly beat, core local commercial operating costs expected to rise 34% YoY in 2H

Nomura│Strong 2Q results and encouraging 3Q guidance

Morgan Stanley│2Q revenue growth in line, large profit growth strongly beat

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

not vested

Moody's Upgrades MEITUAN-W Ratings to Baa2 w/ Positive Outlook

Rating agency Moody's upgraded the issuer rating and senior unsecured ratings of MEITUAN-W (03690.HK) to Baa2 from Baa3, and maintained the positive outlook.

The rating upgrade and positive outlook on MEITUAN-W is due to the consistent improvement in its operating and financial metrics over the past quarters and its expectation that this will continue.

Related News: CMS Raises MEITUAN-W (03690.HK) TP to $157; Solid Mkt Position

MEITUAN-W's solid demand growth of its online lifestyle services in China, strong market position and prudent financial management, will support a further improvement of its financial profile.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

MEITUAN Upgrades 'Prosperity Programme', Spending Tens of Billions of RMB to Support F&B Merchants

MEITUAN-W (03690.HK) announced an upgrade to its "Prosperity Programme" (literal translation of "繁盛計劃") at a conference, spending tens of billions of RMB in funding to drive innovation in the food and beverage industry through dedicated support for consumer growth and digitisation.

New initiatives include a commission rebate of 6 to 12 months to food and beverage merchants, as well as shortening the operating period for group purchases.

MEITUAN also launched a digitalisation project to open up the "BETTER" customer base growth business model, AI site selection, business compass and other business products to all restaurant operators, as well as upgraded MEITUAN's restaurant data asset operation services, with a goal to help restaurant merchants improving their operational efficiency, enhancing their competitiveness in the market, and further stimulating potential consumer demand.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Meituan’s 63% stock surge faces risks in China consumer malaise

The firm last month posted 21 per cent sales growth.

The stock has surged 63 per cent this year.

Meituan’s secret weapon is its cheaper, group-based Pin Hao Fan platform for ordering meals.

Alibaba Group Holding is focusing on bolstering its core e-commerce business rather than its Ele.me food-delivery operation, while ByteDance’s Douyin is emphasising profitability over market share.

Pin Hao Fan is also attracting restaurants that are keen to advertise their cheaper products.

Driver recruiting costs have dropped amid elevated youth unemployment, while Meituan has also saved money by shuttering underperforming warehouses and lowering user subsidies.

On top of all this, a new US$1 billion stock buyback helped boost investor confidence.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... er-malaise

[winston]

not vested

<Research>CLSA Hikes MEITUAN-W (03690.HK) TP to $225; Earning Forecast Lifted

CLSA released a report, estimating that MEITUAN-W (03690.HK)'s 3Q24 total revenue will grow steadily by 20% YoY to RMB91.8 billion, and the adjusted EBIT will surge by 141% compared to the same period last year to RMB12 billion.

The broker expected Meituan's adjusted EBIT from its core business to rise 37% YoY to RMB13.8 billion in 3Q24, on the back of record food delivery margin and rebounding in-store margin.

Losses from new businesses are likely to narrow 65% YoY to RMB1.8 billion, and this trend is expected to carry on till 4Q24.

Related News: G Sachs Raises TPs for MEITUAN-W/ PDD to $212/ US$172

CLSA raised its net profit forecasts for Meituan by 2% and 3% for 2025 and 2026, respectively, and hiked its target price from HKD182 to HKD225, maintaining its Outperform rating.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/analy ... stock-news

[winston]

vested

Chinese food delivery giant Meituan beats quarterly revenue estimates

22.4% rise in third-quarter revenue. Revenue in the three months to Sept. 30 at 93.58 billion yuan ($12.94 billion), up from 76.47 billion yuan in the same period a year earlier.

Its net profit for the quarter hit 12.86 billion yuan, increasing from a profit of 3.59 billion yuan a year earlier. Up 258%.

Source: Reuters

https://finance.yahoo.com/news/chinese- ... 24411.html

[winston]

vested

3Q24: Solid Earnings Beat; 4Q24 Outlook Intact

Despite Low Seasonality, Meituan delivered solid earnings beat in 3Q24.

Total revenue grew 22% yoy to Rmb93.6b, in line with our and street’s estimate.

Non-IFRS net profit was Rmb12.8b, with net profit margin expanding 6ppt yoy to 14%, above consensus estimate.

For 2025, we are optimistic on Meituan with various growth catalysts:
a) solid progress in overseas expansion,
b) gradual rollout of consumption stimulus, and
c) encouraging travel demand momentum.

Maintain BUY with a lower target price of HK$222.00.

Source: UOBKH

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://39646150.fs1.hubspotusercontent-na1.net/hubfs/39646150/Research/Meituan%20(3690%20HK)%20241202.pdf?utm_medium=email&_hsenc=p2ANqtz-_eRpqYkfykaFxRWdxE39VG0w3snom_CMWYEntWRTYVb1vhLYj69qxdTNXivh9fpBobRKMQLsoRjAs9EGZJGaYjyjlUfQ&_hsmi=336489875&utm_content=336489875&utm_source=hs_email

[winston]

vested

Brokers│Views

Daiwa│In-store gross profit missed

HSBC Global Research│Company continued to drive quality growth

CLSA│Performance was stable

Nomura│Macro headwinds will dent business growth

CMSI│Results continued to beat with solid growth prospects

Goldman Sachs│Quarterly results were solid, with focus on merchant support measures and
Keeta investment

Citi│Innovation and operation synergies drive solid growth

Morgan Stanley│Buy-on-dip was suggested

JP Morgan│Profitability remained solid despite mediocre consumption environment

CICC│Quarterly profits continued to beat; loss reduction pace of new initiatives slackened

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN