Meituan 3690

[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.

---------------------------------------------------------

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

[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