Meituan 3690

[winston]

vested

Yesterday, the Beijing Intellectual Property Court registered a case against food delivery giant Meituan (3690) after it removed Ant's Alipay as one of its payment methods from its online shopping platforms.

Source: The Standard

[winston]

Daiwa Lifts MEITUAN-W TP to $500; In-store, Hotel & Travel Units May be Re-rated

Daiwa projected MEITUAN-W (03690.HK) to unveil 2020 results in late March.

The retailer has a higher chance of success than its fellows in the community group-buying market.

MEITUAN-W shall see a meaningful re-rating of in-store, hotel and travel units this year, given better-than-expected domestic travel and local services revenue revival.

The stock was kept at Buy, with target lifted from $370 to $500.

Source: AAStocks Financial News

[winston]

not vested

Food delivery giant Meituan eats US$300 million in losses to chase ‘best opportunity in five years’ as community group buying heats up

Fierce competition in China’s community group buying market took a toll as Meituan’s profits plunged 250 per cent for the quarter

Revenue and profit were up for all of 2020, though, as consumer spending shifted online amid the Covid-19 pandemic

Beat fourth-quarter revenue estimates as profits plunged 250 per cent to a 2 billion-yuan loss.

Revenues rose 35 per cent to 37.9 billion yuan (US$5.8 billion) in the quarter ended December.

Meituan Select has expanded to cover about 90 per cent of the country’s cities and counties, the company said, putting the number at about 2,000.

Daily order volume surpassed 20 million in December.

Revenue from Meituan’s core food delivery business reached 66 billion yuan in the fourth quarter, 20 per cent more than the same period last year, on the back of robust consumer growth.

The number of food orders on the app rose 33 per cent to more than 3 billion for the quarter.

The company’s offline efforts continued to show promise, with in-store and hotel revenue rising 12.2 per cent for the quarter to 7.1 billion yuan amid rising domestic consumption.

The company’s “new initiatives and others” segment, which includes its grocery and bike-sharing businesses, also grew, with revenue reaching 9.2 billion yuan in the fourth quarter, a 52 per cent rise over a year earlier.

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... e-increase

[winston]

not vested

Meituan books 4.7b yuan 2020 profit

Meituan (3690) net profit increased by 1.1 times to nearly 4.71 billion yuan (HK$5.60 billion) year-on-year in 2020.

Under the non-IFRS measure, adjusted net profit fell by 33 percent to 3.12 billion yuan.

Revenue was up by 18 percent to 114.79 billion yuan, of which the food delivery business surged by 37 percent to 21.54 billion yuan, accounting for over 56.8 percent of the total.

For the last quarter, Meituan reported a loss of 2.24 billion yuan, from a profit of 1.46 billion yuan a year ago.

Non-IFRS adjusted profit fell from a 2.37 billion yuan profit in the previous year to 1.44 billion yuan.

Source: The Standard

https://www.thestandard.com.hk/breaking ... 020-profit

[winston]

not vested

Meituan Dianping Class B (3690 HK)

4Q20: Sacrificing short-term pain for long-term gain; deepening penetration into
e-commerce retailing

MTDP delivered a softer set of 4Q20 results.

Total revenue grew by 34.7% yoy to Rmb37.9b, in line with consensus and our estimates.

The company registered an adjusted operating loss and non-GAAP net loss of Rmb2.3b/Rmb1.4b respectively as a result of losses from the new initiative segment.

Management guided that it will continue to invest in the community e-commerce business and expects profitability to remain under pressure.

We maintain BUY with a lower target price of HK$430.00.

Source: UOBKH

https://research.uobkayhian.com/content ... ec7b4994dd

[winston]

not vested

Valuation

Our TP of HK$535 is based on an unchanged SOTP methodology with the introduction of new initiative valuation:
(1) 11x FY22F Price/Sales (PS) for food delivery segment (HK$262/share);
(2) 24x FY22F PE for in-store, hotel and travel business, in line with industry peers (HK$87/share);
(3) 8x FY22F PS for new initiative business (HK$160/share);
(4) investments (HK$1/share); and
(5) net cash (HK$25/share).

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... 690_HK.xml

[winston]

not vested

Short-term margin affected by new investments

Meituan reported FY20 revenue of RMB115bn, up 17.7% yoy, in line with our
expectation. FY20 adjusted net profit fell 33% yoy, below our expectation, mainly due
to higher losses from new investments in 4Q20.

We expect revenue growth for food delivery, in-store and hotel, and new initiatives to
be 114%, 104% and 55% yoy, respectively, in 1Q21F. But losses from new initiatives
will increase qoq, since it is now an important investment period, especially for
community group purchase business, i.e. Meituan Select.

Reiterate Add with a DCF-based TP of HK$350, equivalent to a FY21F P/S of 9.93x,
in the mid-range among its peers.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 352F05FFCA

[winston]

not vested

Valuation

We adjust our TP downward from HK$535 to HK$417, based on an unchanged SOP methodology:
(1) 11x FY22F price/sales (PS) for the food delivery segment (HK$245/share);
(2) 24x FY22F PE for the in-store, hotel and travel business, in line with its peers (HK$62/share);
(3) 8x FY22F PS for the new initiative business (HK$89/share);
(4) investments (HK$1/share); and
(5) net cash (HK$20/share).

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... 690_HK.xml

[winston]

not vested

MEITUAN(3690)

Analysis：

Meituan (3690) has announced its 20Q4 result recently.

The revenue has increased 35% yoy to RMB 37.9 billion with an adjusted loss was RMB 1.44 billion.

The loss was mainly due to Meituan`s heavy investment in community e-commerce in 20Q4.

The company`s 20Q4 food delivery revenue increased by 37% yoy to RMB 21.54 billion. The gross transaction volume of food delivery reached RMB 156.3 billion and the number of food delivery transactions reached 3.3 billion.

These figures have all set record high for the company, indicating that the food delivery business is recovering strongly. We expect the food delivery business will maintain a high growth in 21Q1.

On the other hand, during 20Q4, the company quickly expanded its community e-commerce model “Meituan Select” in around 2,000 cities and counties.

As a result, Meituan Select now covers more than 90% of the cities and counties in China.

Although it is expected that the company will continue to record operating losses in the following quarters, we are optimistic about the potential of the Chinese community e-commerce market in the long term.

Strategy：
Buy-in Price: $315, Target Price: $350, Cut Loss Price: $295

Source: Phillips

[winston]

not vested

MEITUAN-W Shr Slips Over 7% as Key Shareholders Transfer Stake on Rumored Placement

MEITUAN-W (03690.HK), purportedly planning for share placement, cratered nearly 7.45% to close at $276.

The MEITUAN-W's shares owned by Goldman Sachs or held on behalf of customers rose from 132 million to 434 million weekly, i.e. a stake increase from 2.24% to 7.36%, according to CCASS shareholding information.

This may imply the transfer of over 300 million MEITUAN-W shares (or 5.12% shareholdings held in real name) from investors to Goldman Sachs.

TENCENT (00700.HK) and Sequoia Capital are among MEITUAN-W's key shareholders, each having a stake of over 5%, apart from the founder Wang Xing.

Source: AAStocks Financial News