Meituan 3690

[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

[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