Meituan 3690

[winston]

vested

Order volume growth may slow down in 4Q23F

Revenue grew 22.1% yoy to Rmb76.5bn in 3Q23, in line with our expectation, driven by solid growth of core local commerce (+25% yoy) and new initiatives (+15% yoy).

Adjusted NP reached Rmb5.7bn in 3Q23, up 62.4% yoy, beating our expectation, driven by GPM expansion and operating leverage.

We expect Meituan to deliver yoy topline growth of 19% in 4Q23F (+21% for core commerce and +15% for new businesses), and its adjusted NP to grow 332% yoy.

Reiterate Add, with a higher DCF-based TP of HK$276.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 15BFD99345

[winston]

vested

JPM Slashes MEITUAN-W (03690.HK) TP to $67, Trims Financial Forecasts

JPMorgan remarked in a report that MEITUAN-W (03690.HK) shares have been down 23% so far after the market cut its 2024 adjusted EPS forecast by 2%, implying a further 21% P/E cut this year.

However, JPM believed that MEITUAN's core business earnings growth prospects and competition in the local services market, would play an important role in determining the valuation multiple.

The broker dropped its revenue and operating growth forecasts for the group's core local businesses this year to 15% and 5%, respectively, due to the weak macro-economy and competition in the local services market.

The broker's target price on MEITUAN is accordingly axed from $100 to $67, and the rating is Neutral.

Source: AAStocks Financial News

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

[winston]

vested

Meituan (3690 HK)
4Q23 Preview: Pressured Margin Given Persisting Headwinds And Competition

Despite the solid consumption momentum of Spring Festival 2024, we remain cautious
on Meituan moving into 2024, as we see a few potential downside risks including:
a) shrinking operating margin in ISHT due to aggressive competition from Douyin,
b) moderating FD order volume growth, and
c) a lukewarm macro environment.

We saw a shift in the valuation methodology for Metiuan from SOTP to PE due to an overall
slower revenue growth.

Downgrade to HOLD and lower our target price to HK$70.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 153eb6cacf

[winston]

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M Stanley: MEITUAN-W (03690.HK) Shr Price Surge May be Tied to More Ambitious Loss Cuts in Meituan Select Reportedly

Surged more than 10% on Friday (1 Mar), believed to be due to reports that the company may stop operating Meituan Select, its community group-buying business, in a bid to cut losses from its new initiatives segment.

The broker estimated new initiatives operating losses of RMB15 billion and RMB10 billion for this year and next year respectively, with a potential 14% upside in share price from current levels, assuming the new initiatives break even next year.

Source: AAstocks.com

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

[winston]

Citi's Forecast of MEITUAN-W (03690.HK) 4Q23 Results (Table)

Citi Research released a report, outlining its forecast of MEITUAN-W (03690.HK)'s 4Q23 results:

Item│4Q23 Forecast│YoY Change

Total revenue│RMB72.476 billion│+20.5%

Core local commerce revenue│RMB54.201 billion│+24.7%

New business revenue│RMB18.275 billion│+9.7%

Gross profit margin│34.3%│+6.1 ppts

Non-IFRS adjusted profit│RMB3.346 billion│+303.6%

Non-IFRS adjusted EBITDA│RMB4.571 billion│+54.4%

Profit│RMB1.62 billion│Loss to Profit


Related News: CLSA Trims MEITUAN-W (03690.HK) TP to $182, Expects 4Q23 Rev. to Grow Healthily

Source: AAStocks Financial News

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

[winston]

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Meituan’s revenue beats estimates after staving off ByteDance's challenge

By Jane Zhang

Meituan’s quarterly revenue climbed 23%, a sign that it’s making headway in efforts to fend off a challenge from ByteDance Ltd’s Douyin in China’s meal delivery arena.

Sales of 73.7 billion yuan (RM47.98 billion) in the December quarter, versus the 72.7 billion yuan average projection. Net income was 2.22 billion yuan, also better than a consensus of estimates

Source: Bloomberg

https://theedgemalaysia.com/node/705634

[winston]

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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]

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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