Meituan 3690 02 (Jun 23 - Dec 27)

[winston]

vested

<Research>Nomura Trims MEITUAN-W TP to $200 Amid Increased Investment in Overseas Mkt & AI

Nomura released a research report on MEITUAN-W (03690.HK), which maintained robust performance in its core business in 4Q24, with revenue up 20% YoY and non-GAAP operating profit up 2.4 times, beating market expectations by 1% and 13%, respectively.

The group’s new businesses, including grocery and overseas expansion, saw revenue leap 24% YoY, while losses narrowed by 55% to RMB2.2 billion.

Amid increased investment in overseas markets and AI, Nomura dropped its target price on MEITUAN-W from HKD212 to HKD200, with a Buy rating.

Source: AAStocks Financial News

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

[winston]

not vested

<Research>UBS Revises 2025 Profit Forecast for MEITUAN-W (03690.HK), Chops TP to $232

MEITUAN-W (03690.HK)'s 4Q24 revenue rose 20% YoY, slightly beating estimation, while its adjusted operating profit was 13% higher than expected, supported by solid core local commerce margin, UBS said.

However, its adjusted net profit was only in line with forecast, impacted by higher interest and tax expenses.

UBS adjusted its 2025 adjusted net profit forecast for MEITUAN-W to RMB46.5 billion, compared with the market consensus of RMB55 billion.

The broker chopped its target price from $270 to $232, with rating kept at Buy.

Source: AAStocks Financial News

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

[winston]

vested

Earnings Alert: 4Q24 results in line, Keeta Saudi loss guidance raised on faster-than-expected expansion

FY24 adjusted net profit surged by 125% y/y, in line with consensus

Keeta Saudi expansion is outpacing expectations, with daily order volume surpassing Hong Kong after 6 months of launch

Lowered adj. earnings by 9%/5% in FY25/26F, to reflect higher loss in Keeta Saudi expansion; Expect Keeta Saudi will reach an operating profit margin of 3-4% (from GTV level) in long term

Meituan is trading at 17x FY25F PE, on adj. earnings CAGR of 26% from FY24-26F; Maintain BUY with revised TP of 206

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=24386

[winston]

nbot vested

Meituan Takeaway to Subsidize Catering Industry with RMB100B Over 3 Yrs

Xue Bing, the general manager of Meituan's takeaway division, announced at the "2025 China Catering Chain Summit" that the company will provide more subsidies to help merchants reduce costs and boost income, Chinese media reported.

Over the next three years, Meituan will invest RMB100 billion to support the healthy growth of catering partners, marking the largest industry support subsidy plan in the history of the catering sector.

Xue also revealed that the RMB100 billion will focus on four key areas:
1. Helping merchants to subsidize consumers to stimulate demand,
2. Providing assistance funds to increase merchants' income, supporting and rewarding high-quality merchants
3. Promoting initiatives and
4. strengthening industry infrastructure.

Source: AAStocks Financial News

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

[winston]

vested

<Research>Citi Drops MEITUAN-W's TP to $204; Firm May Lift Subsidies to Counter Competition from JD-SW

According to a report from Citi, while MEITUAN-W (03690.HK) 's 1Q25 results are expected to be in line with both its and the market's forecasts, the focus will be on 2Q and full-year growth in food delivery volume, average order value, gross transaction value, revenue, rider costs, and the impact on unit economics.

In Citi's opinion, JD-SW (09618.HK)'s initial food delivery sales mainly reflected broader user adoption, which was driven by the company's attractive discounts and subsidies that encouraged users to order drinks, snacks, and meals more frequently.

This impact may be limited on MEITUAN-W's delivery sales in the near term, but the intensity of discounts, appealing rider compensation, and the waiving of merchant commissions could force MEITUAN-W to ramp up subsidies for users, riders, and merchants, and accelerate the rollout of rider incentives, which will in turn weigh on its revenue growth and unit economics.

Citi lowered its target price for MEITUAN-W from $217 to $204, with a Buy rating remaining in place.

Source: AAStocks Financial News

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

[winston]

not vested

<Research>Citi Expects MEITUAN-W to Bear Brunt of CN Regulatory Guidelines on Fee Charges by Online Platforms to Merchants

Citi has published a report viewing the latest Compliance Guidelines for Charging Behaviors of Online Trading Platforms (Draft for Comments) issued by the State Administration for Market Regulation as part of a continuous process by watchdogs to ensure the healthy and sustainable development of the platform economy.

In Citi's opinion, the ultimate goal of the Chinese government is to improve the business environment for merchants and increase their income, and so platforms that provide services and facilitate transactions for small-scale merchants are expected to face greater pressure.

Among the Chinese internet platforms under Citi's coverage, it is estimated that both commission and monetization rates will slide over time.

The platforms to be most affected include MEITUAN-W (03690.HK), BABA-W (09988.HK), JD-SW (09618.HK) .

Source: AAStocks Financial News

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

[winston]

not vested

Meituan (3690 HK)

1Q25: Earnings Beat; Expecting Margin Pressures As FD Competition Intensifies

Meituan’s 1Q25 results are in line with expectations.

Total revenue grew 18% yoy to Rmb86.6b, in line with our and consensus estimates.

Non-IFRS net profit was Rmb10.9b, with net margin expanding 2ppt yoy to 12.6%, beating consensus estimates by 13%.

For 2025, we turn cautious on Meituan and expect to see margin pressure stemming from intense competition in the FD business.

Downgrade to HOLD with a lower target price of HK$140.00.

Source: UOBKH

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

[winston]

not vested

<Research>HSBC Research Lists 2Q-4Q Food Delivery Rev./ Operating Profit per Order Forecasts for MEITUAN-W (Table)

Item│ 1Q25│2Q25 Forecast│ 3Q25 Forecast│4Q25 Forecast
Revenue from food delivery business│41.325 billion│42.437 billion│49.219 billion│45.847 billion
-YoY change│+14%│+5%│+5%│+6%

Average daily orders of food delivery business│57.5 million orders│64.6 million orders│73.2 million orders│68.5 million orders
-YoY change│+10%│+10%│+10%│+10%

Operating profit (OP) of food delivery business│7.733 billion│8.069 billion│7.411 billion│6.673 billion
-YoY change│+39%│-20%│-18%│-14%

OP/order │1.5│1.4│1.1│1.1
-YoY change│+27%│-27%│-25%│-22%

The above currencies are in RMB
------------------------------------------

Item│2025 Forecast│2026 Forecast

Revenue from food delivery business│178.827 billion│193.875 billion
-YoY change│+7%│+8%

Average daily orders of food delivery business│66 million orders│70.6 million orders
-YoY change│+10%│+7%

OP of food delivery business│29.886 billion│36.405 billion
-YoY change│-8%│+22%

OP/order│1.2│1.4
-YoY change│-16%│+14%

The above currencies are in RMB

Related NewsCiti Chops its MEITUAN-W (03690.HK) TP to $192 as Firm Determined to Win Mkt Shr w/ More Investment in Food Delivery

Source: AAStocks Financial News

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

[winston]

not vested

Increasing investment to defend market share

Meituan’s revenue reached Rmb86.6bn in 1Q25, up 18.1% yoy, in line.

Adjusted net profit was Rmb10.9bn in 1Q25, up 46.2% yoy, above our expectation, mainly due to better margin for the local commerce sector and efficient opex control.

We forecast 2Q25F revenue to grow 12.9% yoy, but adjusted net profit to decline 10.1% yoy due to an increase in subsidies for its on-demand delivery business.

Reiterate Add with a lower DCF-based TP of HK$166.

Source: CGS

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://rfs.cgsi.com/api/download?file=bf80e8a2-5617-4c83-884e-647074eb0c55&rpt=B5A17DB9-D057-FFB6-6D23-AF91B9AB5EEC

[behappyalways]

Meituan warns local rivalry, global push to hurt profits
https://www.theedgesingapore.com/news/c ... rt-profits