Meituan 3690

[winston]

Meituan first quarter loss widens to 4.8b yuan

Meituan (3690) said net loss expanded by 206.9 percent year-on-year to 4.85 billion yuan (HK$5.7 billion) in the first quarter.

The adjusted net loss was 3.89 billion yuan, which meets the market expectations, but higher than the loss of 216 million yuan last year.

The last-quarter revenue grew by 120.9 percent to 37.02 billion yuan, better than market expectations.

Food delivery income jumped by 116.8 percent to 20.58 billion yuan. In-store, hotel and travel grew by 112.7 percent to 6.58 billion yuan. New initiatives and others increased by 136.5 percent to 9.86 billion yuan.

The number of transacting users was up by 27 percent year-on-year to 569 million. The number of active merchants increased by 16.9 percent to 7.1 million.

Source: The Standard

https://www.thestandard.com.hk/breaking ... -4.8b-yuan

[winston]

not vested

Meituan Dianping Class B (3690 HK)

1Q21: Solid Results; A Mix Of Joy And Regulatory Uncertainties Moving Forward

1Q21 results are within expectations.

Total revenue grew 121% yoy to Rmb37b, in line with consensus estimates.

MTDP delivered adjusted operating loss and non-GAAP net loss of Rmb4.2b/Rmb2.9b respectively as a result of widened losses from its NIO segment and higher S&M spending, slightly above street estimates.

Management expects the NIO segment’s operating loss to widen due to heavy investment in expanding its supply chain.

We maintain BUY with a lower target price of HK$365.00.

Source: UOBKH

https://research.uobkayhian.com/content ... f2a0be6734

[winston]

not vested

Meituan (3690 HK) - Strong core and solid execution while pursuing the next opportunity

In our view, Meituan is growing into a one-stop local service provider, partner and platform ecosystem for consumers, merchants, and suppliers.

Meituan’s 1Q21 results came in above expectations, with robust results across all 3 business segments.

Non-IFRS net loss of RMB3.9b came in slightly better than consensus expectation of a loss of RMB4.0b.

On the ongoing investigation by the SAMR, Meituan notes that exclusive partnerships have been prohibited, but there has not been any significant impact on its day-to-day operations.

On rider benefits, Meituan plans to cover additional injury-related insurance for its 1P riders, which we believe adds up to ~RMB0.05 of extra rider costs per delivery, likely to be less than what the market had feared in our view.

On its CGP business, we note that Meituan Select has expanded its coverage to more than 2,600 cities and counties in 1Q, which broadly completes its nationwide expansion objective.

We note that more than half of the new user growth in 1Q was contributed by Meituan Select; management believes that the latter can potentially add 300-400m users over the next few years.

Encouragingly, we note that Meituan Select has already exhibited better user retention and transaction frequency metrics compared to its food delivery business.

All considered, we believe this set of results and management’s follow-up actions on a number of regulatory issues should help allay a number of fears by the market.

Incorporating other changes to our forecasts, our FV rises from HKD328 to HKD355. BUY.

Source: OCBC

[winston]

not vested

How Meituan outcompeted Trip.com to become China’s largest hotel booking platform

by Low De Wei

By the third quarter of 2020, revenue from hotel, in-store, and travel bookings had returned to pre-pandemic levels and beyond, rising 4.8% year-on-year.

In contrast, it’s archrival Trip.com has seen a lackluster recovery. By the end of last year, Trip.com’s net revenue was still down 40% compared to the same period last year.

Split his employees into teams to explore new revenue streams in local services ranging from movie ticketing to bike-sharing, with promises of further resources and funding if they achieved breakthroughs.

The hotel booking division was created in 2013 under this initiative. Nicknamed “Watermelon” by its founding team, it got off to a rocky start, signing 120 deals with small-town hotels in the first month of its existence.

He focused on inking deals with small hotels in China’s lower-tier cities and towns. Long neglected by travel operators and lacking the promotional power and customer base of popular chain hotels in China’s business hubs, many seized on the opening provided by Meituan.

Source: KrAsia

https://kr-asia.com/how-meituan-outcomp ... oking-king We

[winston]

not vested

Meituan’s Wang Xing told to shun spotlight

China’s government summoned Meituan’s Wang Xing to a meeting recently and warned him to keep a low profile.

The officials however indicated to Wang that no further fallout will result from the incident.

Officials refrained from taking more severe action against Wang because they didn’t want to convey the impression that every minor transgression could result in dire consequences, one of the people said.

His donation of a US$2.3 billion stake in the food delivery giant to charity -- one of the largest single acts of philanthropy during the pandemic -- was revealed through a company disclosure statement to the Hong Kong Stock Exchange, in lieu of a personal announcement.

Beijing is now focusing its efforts on a broader investigation, announced in April, into whether Meituan violated anti-monopoly laws through practices such as forced exclusivity arrangements.

Source: The Standard

https://www.thestandard.com.hk/breaking ... -spotlight

[winston]

not vested

MEITUAN-W (03690.HK) Launches Digital Life Services Platform in SH, Aims to Cover 100 Cities in 3 Yrs

Partnering with Shanghai Institute of Digital Governance (literal translation of "上海數字治理研究院"), MEITUAN-W (03690.HK) launched the country's first digital life services platform in Shanghai on 21 June.

Said platform has already been connected to the digital operating signs system of Shanghai and is expected to connect with 100 cities across the country in 3 years.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>C Suisse Foresees MEITUAN-W (03690.HK)'s CGP Biz to Advance over Solid Execution

MEITUAN-W (03690.HK)'s strong execution capability and delivery business are expected to supply steady cash flow with its community group purchase business predicted to burgeon in mid-term, despite the stock's recent slumps caused by China's regulatory policies imposed on the sector, reported Credit Suisse.

Credit Suisse restated the Outperform rating for MEITUAN-W with a target price of $374. The broker suggested to buy on dip.

Source: AAStocks Financial News

[winston]

not vested

Nomura: MEITUAN-W 2Q21E Rev +73% YoY, Non-GAAP Operating Loss RMB3.6B

Nomura projected MEITUAN-W (03690.HK)'s total revenue to hike 73% YoY to RMB42.8 billion in 2Q21F, in alignment with consensus.

The non-GAAP operating loss is expected to be RMB3.6 billion, beating the Street’s estimate of a RMB4.7 billion loss, primarily because the community group buying sector was constrained in subsidizing due to stricter scrutiny by the authority.

The broker predicted the company’s food delivery revenue to have soared 57% YoY to RMB22.9 billion in 2Q21F, meeting consensus, on the ride of a 57% increment in food delivery order volume and 0.4-ppt uptick in take rate.

Related News: C Suisse Foresees MEITUAN-W (03690.HK)'s CGP Biz to Advance over Solid Execution

The rating was retained at Buy with target price of HK$346. The broker valued the food delivery business at USD117 billion; and the in-store, hotel and travel business at USD59 billion.

Source: AAStocks Financial News

[winston]

not vested

China moves to protect food delivery drivers from digital exploitation, knocking stocks such as services giant Meituan

The policy guidelines come as China ramps up a campaign to rein in Big Tech, forcing the sector to put greater emphasis on consumer and worker rights

The guidelines are designed to protect basic labour rights for riders, including a base income, work safety, food safety, a decent working environment

Meituan employs about 3 million riders delivering an average of more than 27 million food orders a day in 2020.

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... ploitation

[winston]

vested

Meituan (3690 HK)

Guidelines On Protecting The Rights And Interests Of Food Delivery Riders

SAMR has released detailed guidelines on protecting the rights and interests of >200m
food delivery riders.

Local governments are requested to progressively implement specific measures. Platforms are required to make changes to improve driver safety, including reducing pressure for fast deliveries, and to offer better dispute resolution processes.

The guideline aims to boost flexible employment, create new job opportunities and lift people’s income, Maintain HOLD.

Lower target price to HK$209.00. Entry price: HK$190.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 69abdb7dfd