Meituan 3690 02 (Jun 23 - Dec 27)

[winston]

vested

MEITUAN-W 4Q23 Results Swing Loss to Profit of RMB2.2B+, Topping Forecast

MEITUAN-W (03690.HK) announced that it turned from loss to profit in the fourth quarter ended 31 December 2023, earning RMB2.217 billion, compared to a loss of RMB1.084 billion in the same period of 2022.

The profit beat the forecasts of 5 brokers as consolidated by this website (RMB44 million-RMB1.62 billion).

The non-IFRS adjusted net profit was RMB4.375 billion for the fourth quarter, a 427.6% YoY spike, also better than 11 brokers' forecasts as consolidated by this website (RMB1.95 billion-RMB3.907 billion).

Related News: BofAS Predicts MEITUAN-W (03690.HK) 4Q23 Rev. to Rise 20% YoY, Trims TP to $132

The quarterly revenue amounted to RMB73.696 billion, representing a 22.6% YoY increase.

The segment revenue increased by 26.8% YoY to RMB 55.1 billion. Operating profit increased by 11.1% to RMB8 billion, and operating margin was 14.5%.

Source: AAStocks Financial News

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

[winston]

vested

MEITUAN-W (03690.HK) 2023 Swings into Profit of RMB13.86B, Adj. NP RMB23.25B

MEITUAN-W (03690.HK) announced that it has turned from a loss into a profit for the year ended December 2023.

Profit for equity holders was RMB13.856 billion, compared to a loss of RMB6.686 billion in the same period last year.

Basic earnings per share were RMB2.23. No dividend will be paid.

Non-IFRS adjusted profit reached RMB23.253 billion, rocketing 722.5% YoY. Adjusted EBITDA surged 145.5% to RMB23.878 billion.

Revenue for the year was RMB276.745 billion, up 25.8% YoY.

Revenue from the core local commercial segment grew by 28.7% to RMB206.907 billion.

New initiatives segment revenue was RMB69.838 billion, an increase of 18%.

The number of MEITUAN's on-demand delivery transactions reached 21.893 billion orders last year, lifting 23.9% YoY, while the order volume of Meituan Insta shopping hiked over 40% YoY.

The gross transaction value of its in-store, hotel and travel business, spiked by more than 100%, with annual transacting users and annual active merchants growing by more than 30% and 60% respectively.

Source: AAStocks Financial News

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

[winston]

vested

Broker│Opinion

CLSA│Decrease in core local commercial profitability, offset by lower new business losses

Goldman Sachs│Solid quarterly results, profitability outlook beats expectations

UBS│Reversing the downward earnings trend

Daiwa│Meitaun Select losses narrowed further

Nomura│Earnings outlook improved, benefiting from further reduction in new business losses

Citi│Stabilise business and strategically optimise new business losses

Jefferies│Enhance user experience and efficiency to unlock momentum

CICC│Core local business profit exceeds expectations, Meituan Select to reduce loss significantly

Haitong International│Guaranteeing loss reduction to the market, looking forward to high-quality growth

JPMorgan│Multi-year programme improves financial visibility, upgrades to Overweight

Related News: MEITUAN-W (03690.HK) 2023 Swings into Profit of RMB13.86B, Adj. NP RMB23.25B

Source: AAstocks.com

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

[winston]

vested

Meituan
Boosted by lower losses for new initiatives

Revenue grew 22.6% yoy to Rmb73.7bn in 4Q23, slightly above our expectation, driven by the steady growth of core local commerce (+26.8% yoy).

Adjusted NP reached Rmb4.4bn in 4Q23 (+428% yoy), beating our expectation, driven by significantly lower losses for the new initiatives.

We expect Meituan to deliver yoy topline growth of 16%/19% in 1Q24F/FY24F, and adjusted NP to grow by 17%/34% yoy.

Reiterate Add, with a lower DCF-based TP of HK$154.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 2E96995004

[winston]

vested

Earnings Alert: 4Q23 revenue grew 23%; expect continuously growing demand for ‘everything home’

4Q23 revenue grew by 23%, in line

Adjusted earnings surged more than 4-fold to Rmb4.4bn, beating market expectations on higher-than-expected gross margin

Raising FY24F/25F adjusted earnings by 2%/3% on reduced losses in new initiatives segment

Maintain BUY on growing demand for ‘everything home’; TP at HK$139

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18789

[winston]

Moody's Changes Outlook on MEITUAN-W (03690.HK) Ratings to Positive, Affirms Baa3 Rating

Moody's announced to change the outlook on MEITUAN-W (03690.HK) ratings to positive from stable. At the same time, Moody's affirmed MEITUAN-W's Baa3 issuer rating and senior unsecured ratings.

Ying Wang, vice president and senior analyst at Moody's, said the positive outlook reflected the faster-than-expected deleveraging trend of MEITUAN-W, as well as the better market position in its core food delivery and in-store, hotel and travel service operations.

Related News: BOCI Trims MEITUAN-W (03690.HK) TP to $164; Offline Consumption Recovers but Rivalry Escalates

The company was expected to enhance its earnings performance and improve its credit profile by maintaining a solid and strong operating performance in its core businesses and further reducing operating losses in its new initiatives.

Moody's expected MEITUAN-W's adjusted EBITDA margin to gradually hike to 10% over the next 12-18 months, while revenue growth will subside to 10%-15% per annum over the next 2-3 years as a result of a possible structural slowdown in the Chinese economy.

Source: AAStocks Financial News

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

[winston]

not vested

MEITUAN(3690)

Analysis：

Meituan is a leading e-commerce platform for lifestyle services in China, providing services to meet people`s daily "food" needs and further expanding to various lifestyle and tourism services.

The company announced its financial report for the fourth quarter of 2023:
Revenue of 73.7 billion yuan, a yoy+23%;
Adjusted net profit of 4.4 billion yuan;
Operating profit was 1.76 billion yuan.

Among them, the core local commercial revenue was 55.13 billion yuan, yoy+26.8% and the operating profit was 8.02 billion yuan, yoy+11.1%, both exceeding market expectations;

New business revenue of 18.57 billion yuan, YOY+11.5%, and operating loss of 4.83 billion yuan.

The operating profit margin was -26.0%, narrowing 12.8pcts yoy, and the loss reduction exceeded expectations.

Strategy：
Buy-in Price: $116, Target Price: $142, Cut Loss Price: $103

Source: Phillips

[winston]

<Foresight>Brokers Expect MEITUAN-W 1Q Adj. Profit to Rise ~14% YoY; Focus on GPM, Overseas Expansion (Update)

MEITUAN-W (03690.HK) will release its 1Q24 results this Thursday (6 June).

According to the forecast made by 7 brokers as summarized by our reporters, MEITUAN-W's 1Q24 non-IFRS adjusted profit will range from RMB5.3 billion to RMB7.637 billion, representing a rise of -3.5%/ +39.1% YoY from RMB5.491 billion in the same period of 2023.

The median was RMB6.244 billion, up 13.7% YoY.

Investors will be concerned about the latest operational guidance from MEITUAN-W's management, including guidance on competition and margins for in-store business, question on whether operating margins have bottomed out, and strategies and plans for expanding into overseas markets.

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Related NewsRatings & TPs on MEITUAN-W (03690.HK) (Table) (Update)

Broker│1Q24 Non-IFRS Adjusted Profit Forecast (RMB)│YoY Change

CICC│7.637 billion│+39.1%
UBS│6.424 billion│+17%
Citi│6.312 billion│+15%
Goldman Sachs│6.244 billion│+13.7%
BofA Securities│5.9 billion│+7.4%
CCBI│5.461 billion│-0.5%
Huatai Securities│5.3 billion│-3.5%

Based on MEITUAN-W's non-IFRS adjusted profit of RMB5.491 billion in 1Q23

Source: AAStocks Financial News

[winston]

vested

<Research>CLSA: Macro Challenges for MEITUAN-W (03690.HK) Continue

MEITUAN-W (03690.HK) will announce its 1Q24 results today (6 June).

In a research report, CLSA noted that MEITUAN continues to face macro challenges but profits are likely to rise, while losses from new businesses decline.

The broker expected the group's total revenue for 1Q to hike 20% YoY to RMB70.1 billion, following strong demand during the Chinese New Year.

Food distribution, which is vulnerable to macroeconomic weakness, may see revenue growth slow to 17% YoY, but in-store services are likely to remain strong.

The broker added that MEITUAN's core local commercial adjusted EBIT may decline 9% YoY due to a higher base, higher subsidies for shop services and a shift to a direct sales model to fend off competition and promote online migration.

However, the Group's adjusted EBIT for 1Q is likely to lift 24% YoY to RMB5.5 billion.

CLSA maintained MEITUAN's Buy rating and target price of $182.

Source: AAStocks Financial News

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

[winston]

vested

<Results>MEITUAN-W 1Q Profit Up 60%, Adj. Profit RMB7.488B Nears Upper End of Forecast

MEITUAN-W (03690.HK) announced its results for 1Q24 ended March, with net profit for the period reaching nearly RMB5.369 billion, surging 59.9% YoY.

Non-IFRS adjusted net profit was RMB7.488 billion, a YoY growth of 36.4%, which was in line with the forecasted range of RMB5.3 billion to RMB7.637 billion by the 8 brokers summarised by our reporters, and was close to the upper end of the range.

Non-IFRS adjusted EBITDA for 1Q lifted 28.9% YoY to RMB8.07 billion, and operating profit elevated 45.3% YoY to RMB5.209 billion.

As of the end of March this year, the number of MEITUAN's on-demand delivery transactions reached 5.464 billion, a 28.1% YoY rise.

MEITUAN recorded a total revenue of RMB73.276 billion in 1Q, an increase of 25% YoY.

Core local commerce revenue grew 27.4% to RMB54.626 billion, while the segment's operating profit increased by 2.7% to about RMB9.7 billion, mainly due to the increase in the number of transactions, which led to an increase in transaction value.

New initiatives revenue mounted 18.5% to RMB18.65 billion, while new business operating loss narrowed to RMB2.757 billion from RMB5.029 billion in 1Q23, with the operating loss ratio shrinking by 17.2 ppts YoY to 14.8%.

MEITUAN noted that both the operating loss and operating loss ratio of its goods retail business improved during the period.

To date, MEITUAN has repurchased a total of 82.5083 million Class B shares on the Stock Exchange this year for a total consideration of nearly HK$7.174 billion.

Related News: BofAS Lifts MEITUAN-W (03690.HK) TP to $135, Expects 1Q Rev. to Hike 20% to RMB70.5B

Source: AAStocks Financial News

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