Meituan 3690 02 (Jun 23 - Dec 27)

[winston]

vested

Meituan's profit soars 60pc to 5.3b yuan in Q1

by Melody Chen

The operating margin dropped, for which Meituan mainly blamed the lower average order value of food delivery and its Instashopping businesses.

Source: The Standard

https://www.thestandard.com.hk/section- ... yuan-in-Q1

[winston]

Broker |Opinion

CLSA| Challenges faced

HSBC Global Research│1Q24 revenue and operating profit beat expectations

UBS│1Q24 operating income beat expectations with strong profitability

Macquarie│1Q24 results beat expectations

Goldman Sachs│2H24 profit visibility will be strong

Citi│1Q24 quickly adapted to consumption changes

Daiwa│2024-2026 earnings forecasts raised by 7-27% on solid quarterly results

Jefferies│ Strong execution capability

Haitong International│ Profitability was better than expected; 2024 expected to record quality growth

JPMorgan│ Increase in merchant value and cost optimization

UOB Kay Hian│ Benefited from travel demand

Nomura│1Q24 results and 2Q24 guidance were better than expected

Morgan Stanley│ Competition in the in-store business stabilized

Source: AAStocks Financial News

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

[winston]

New initiatives’ losses set to narrow further

Revenue reached Rmb73.3bn in 1Q24, a yoy increase of 25%, among which core local business grew by 27.4% yoy to Rmb54.6bn, slightly above our expectations.

Adjusted net profit was Rmb7.5bn, up 36.4% yoy, slightly better than we expected, mainly due to lower losses incurred for new initiatives.

Due to the high base of 2Q23, we now expect revenue and adjusted net profit growth of 18.2% yoy and 26.5% yoy for 2Q24F.

Management expects new initiatives’ losses to narrow further qoq in 2Q24F.

Reiterate Add with a higher DCF-based TP of HK$159.

Source: CIMB

https://rfs.cgsi.com/api/download?file= ... 53F1C8CC53

[winston]

vested

Meituan jumps on the bondwagon

Meituan (3690) is considering raising funds of more than US$1 billion (HK$7.8 billion) via a bond offering this year, people familiar with the matter said, as the Chinese food delivery and shopping platform seeks to repay some existing debt and fund its expansion.

Meituan, founded in 2010 and led by billionaire Wang Xing, is working with investment banks to lay the groundwork for an offering, the people said.

While other tech giants including Alibaba (9988) and JD.com (9618) have recently opted for convertible bond sales, Meituan is leaning towards a regular bond offering instead, the people said.

Proceeds will likely be used to replenish working capital, repay some bonds maturing from next year, and fund growth, the people said.

Meituan has a 2.125 percent US$750 million bond due in October 2025, data compiled by Bloomberg show.

While it will take a cautious approach, Meituan is looking to expand beyond Greater China and into the Middle East and possibly other markets such as Europe and Southeast Asia, Wang said earlier this month after the company reported a 60 percent jump in quarterly net income from a year earlier.

In China, Meituan is facing new rivals including Kuaishou Technology (1024) and ByteDance in the meal-delivery business.

Meituan was listed on the Hong Kong Stock Exchange in 2018. Its shares have climbed about 43 percent this year.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... -bondwagon

[winston]

Meituan Company Profile

It operates through Core Local Commerce and New Initiatives segments.

The company offers food delivery services; and helps consumers purchase local consumer services provided by merchants in numerous in-store categories or make reservations for hotels, and attraction and transportation ticketing.

It also sells goods from B2B food distribution services and Meituan grocery; and engages in various businesses, such as Meituan Select, Meituan Instashopping, ride sharing, bike-sharing and electric mopeds, power banks, and micro-credit services.

In addition, it provides cloud computing services; merchant information technology and advisory services; online marketing services; and operates e-commerce service platform.

Meituan was founded in 2003 and is headquartered in Beijing, China.

[winston]

vested

KUAISHOU-MEITUAN Co-op Reportedly Extended to 'Thousands of Stores in Hundreds of Cities'

The strategic cooperation between KUAISHOU-W (01024.HK) and MEITUAN-W (03690.HK) , which recently expired and was renewed, will be fully upgraded, Chinese media cited a person close to KUAISHOU-W.

Pursuant to the agreement, the scope of cooperation between KUAISHOU-W and MEITUAN-W will be extended to "thousands of stores in hundreds of cities" across China in the next three years.

Source: AAStocks Financial News

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

[winston]

not vested

Meituan (3690 HK)
2Q24 Results Preview: ISHT Margin To Stabilise; Narrowing Losses In New Initiative

The current market focus for Meituan is mainly on in-store industry competition and margin recovery, food delivery growth and narrowing new initiative losses.

We opine the resilient summer holiday travel momentum would lead to marginally easing
competition with Douyin, thereby stabilising ISHT margin.

We expect the rising popularity of Pinhaofan against a cautious consumption backdrop would fuel Meituan’s UE and profitability of low AOV orders.

Maintain BUY with a target price of HK$139.00.

Source: UOBKH

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

[winston]

vested

<Research>HTSC Expects MEITUAN-W (03690.HK) 2Q Non-IFRS NP to Rise 16.4% QoQ to RMB8.92B

Huatai Securities wrote in a report that China's macro environment remained volatile in 2Q, with growth in retail food and beverage consumption within the total retail sales of social consumer goods slowing down.

Amid this, MEITUAN-W (03690.HK) linked its to-home and in-store business through its "God Member" scheme, while accelerating loss reduction in its new business.

The broker believed the company's profitability is still resilient under pressure due to years of operation refinement.

HTSC maintained its Buy rating on MEITUAN, with a target price of $150.7.

Related News: UBS: MEITUAN-W (03690.HK) Core Biz May be Dented by Weak Macro, But Competition with Douyin Improves; Mkt Shr Regained

The broker expected MEITUAN's revenue to reach RMB79.92 billion in 2Q24, up 17.6% YoY. Non-IFRS net profit would be RMB8.92 billion, rising 16.4% QoQ.

Revenue forecasts for 2024/25/26 would be RMB325.2 billion, RMB383.7 billion and RMB450.1 billion respectively, representing YoY growth of 17.5%, 18% and 17.3%.

Non-IFRS net profits during the 3 years are projected to be RMB37.9 billion, RMB53.4 billion and RMB70.0 billion, representing YoY growth of 63.1%, 40.8% and 31.1%.

HTSC expected MEITUAN's 2Q24 food and beverage takeaway unit volume to grow 13% YoY, while revenue from this segment would elevate 11% YoY, mainly due to a slight decline in average unit price amidst the trend of pursuing price-performance ratio in consumption.

On the profit side, the company is actively improving subsidy efficiency and advertising monetisation rate to hedge against the impact of average order volume decline, and is expected to earn RMB1.6 per unit of takeaway in 2Q.

Source: AAStocks Financial News

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

[winston]

vested

<Research>Citi Expects MEITUAN-W (03690.HK) 2Q Rev. to Rise 18% YoY, Non-GAAP NP RMB12.6B

Citi Research expected in a report that MEITUAN-W (03690.HK) would report revenue of RMB80.2 billion for 2Q24, up 18% YoY, with a non-GAAP net profit of RMB12.6 billion, which is higher than market consensus.

The broker expected the company to perform broadly in line with expectations for 2Q, with new business losses likely to be lower than expected and core local commercial operations slightly ahead.

The key focus will be the group's 3Q-4Q guidance for food takeaway transaction volume growth and unit economics (UE), in-store business revenue growth and margin trends, and new initiatives. An update on its KeeTa platform would also be a key focus.

Related NewsUBS: MEITUAN-W (03690.HK) Core Biz May be Dented by Weak Macro, But Competition with Douyin Improves; Mkt Shr Regained

The broker said KeeTa's recent collaboration with 7-Eleven is expected to help the platform expand its reach into lifestyle products, flowers, cakes and other non-F&B categories in the future.

There are also reports that the company will enter the Middle East region in September or October.

Citi maintained its target price of $140 on MEITUAN, with a Buy rating.

Source: AAStocks Financial News

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

[winston]

vested

<Research>M Stanley: Macro Climate Weighs on MEITUAN-W (03690.HK) Growth, but Profitability Intact

The macro climate weighed on the growth of MEITUAN-W (03690.HK), while weak consumption sentiment may drag down the short-term outlook for food delivery volume growth, Morgan Stanley released a research report saying.

However, Morgan Stanley was more optimistic on MEITUAN-W's core profitability, considering the improved economic efficiency of the food delivery unit and the rebound of in-store profit due to stabilized competition.

Related News: Citi Expects MEITUAN-W (03690.HK) 2Q Rev. to Rise 18% YoY, Non-GAAP NP RMB12.6B

Morgan Stanley kept rating at Equalweight, with a target price of $120.

Source: AAStocks Financial News

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