Meituan 3690

[winston]

not vested

MEITUAN-W 3Q Adj. Net Loss RMB5.527B, In Line

2021/11/26

MEITUAN-W (03690.HK) announced the result for 3Q ended 30 September 2021.

The revenue rose 37.9% YoY to RMB48.829 billion.

A loss of RMB9.994 billion was recorded, compared to a profit of RMB6.321 billion in the corresponding period of the previous year.

Under non-IFRS measures, the adjusted EBITDA loss amounted to RMB4.062 billion, compared to an adjusted EBITDA profit of RMB2.675 billion.

The adjusted net loss, on the other hand, amounted to RMB5.527 billion, in line with the median of loss at RMB5.465 billion forecast by 12 brokers as compiled by our reporters.

The adjusted net profit for the corresponding period of the previous year was RMB2.055 billion.

Source: AAStocks Financial News

[winston]

not vested

Ratings, TPs on MEITUAN-W (03690.HK) (Table)

2021/11/17

Brokers│Ratings│TPs (HKD)
Sinolink Securities│Buy│413
CLSA│Buy│400
Guotai Junan Securities│Overweight│383.73
Citigroup│Buy│364
Nomura│Buy│354
China Securities│Buy│346.29
Jefferies│Buy│346
BOC International│Buy│340
DBS│Buy│338
China Merchants Securities International│Buy│335
HSBC Global Research│Buy│330
UBS│Buy│330
CICC│Outperform│324
BOCOM International│Buy│323
Morgan Stanley│Overweight│320
CITIC Securities│Buy│318
Goldman Sachs│Buy│312
Everbright Securities│Buy│305.71
Huatai Securities│Buy│304.9
KGI Securities│Hold│300
JPMorgan│Overweight│300
China Galaxy International│Overweight│299
Macquarie│Neutral│244
UOB Kay Hian│Hold│242

Source: AAStocks Financial NewsSource:

[winston]

not vested

China food delivery giant Meituan reports 10 billion yuan loss after paying
antitrust fine China’s biggest on demand food delivery provider Meituan reported
a 10 billion yuan loss in Q3 after getting hit with an antitrust fine

by Tracy Qu and Jane Zhang

Besides the antitrust fine imposed by the Chinese government, a business segment called ‘new initiatives and others’, which includes group buying, recorded a wider operating loss of 10.9 billion yuan, compared with a 2 billion yuan loss for the
same period of 2020.

In October, SAMR levied a 3.4 billion yuan (US$533 million) fine on Meituan. The
fine was equivalent to about 3 per cent of Meituan’s total domestic revenue of
114.7 billion yuan last year.

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... ter-paying

[winston]

vested

Retail + Technology to drive future growth

Meituan reported 3Q21 revenue of Rmb48.8bn, up 38% yoy, and an adjusted net loss
of Rmb5.5bn, compared to net profit in 3Q20, in line w ith our expectations.

We expect revenue for food delivery, in-store, hotel and travel, and new initiatives to
grow by 19.3%, 23.5%, and 45.9% yoy, respectively, and OPM to be 5.7%, 39.8%, and
-85.5% in 4Q21F.

Meituan changed its strategy from “Food + Platform” to “Retail + Technology” in Sep, reflecting its determination to penetrate China’s retail market.

Reiterate Add w ith a DCF-based TP of HK$300.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... E57CD3545B

[winston]

vested

Meituan (3690 HK)

3Q21: Falls Into The Red; Near-Term Outlook Remains Bleak On Weak Food
Delivery Segment

Meituan’s 3Q21 earnings missed expectations.

Total revenue grew 38% yoy to Rmb48.8b, 3-4% in line with our and consensus’ estimates.

The company falls into the red with an adjusted net loss of Rmb5.5b due to widened losses from its NIO segment, challenging weather conditions, weak macro environment and resurgence of the pandemic.

SAMR fines of Rmb3.4b were recognised in 3Q21 but reversed out under non-GAAP line.

Maintain HOLD. Target price: HK$256.00

Source: UOBKH

https://research.uobkayhian.com/content ... b73d06b54c

[winston]

Meituan (3690 HK) - Good 3Q21 scorecard; not immune to near-term headwinds

Meituan turned in a solid set of 3Q21 results.

Revenue grew 38% YoY to RMB48.8b, or ~1% above consensus, which we believe is commendable given the resurgent Covid-19 cases and challenging macro conditions.

Food delivery GTV growth was robust at 29% YoY on the back of the enlarged base of transacting users and enhanced stickiness.

The group’s adjusted net loss of RMB5.5b was also better than consensus.

We saw healthy growth trajectory in operational metrics, with transacting users increasing 39.1m QoQ to 667.5m while active merchants also increased 0.6m QoQ to 8.3m.

On food delivery, management believes that its long-term goal of attaining 100m daily orders remains intact, though the impact of the pandemic, softer macro and high base effects could weigh in the near-term.

Also, we believe that the incremental rider cost from social security will be less than RMB0.5 per order, which will take time to materialize.

As for its in-store, hotel & travel segment, we believe that this could be more resilient than food delivery, as consumers could become more price sensitive and consume coupons and packaged deals on the platform.

In our view, there are a number of ongoing headwinds facing local services operators like Meituan.

However, we view these to be near-term in nature, while the longer-term growth and margin potential for the group’s core food delivery and in-store businesses are likely to remain intact.

Following adjustments (while maintaining our ESG premium of 10%), our FV dips from HKD316 to HKD300. BUY.

Source: OCBC

[winston]

not vested

G Sachs: MEITUAN-W Stays Confident in Long-term Growth, Restates Target of 100M Daily Food Delivery Orders by 2025

MEITUAN-W (03690.HK)'s management believed the business will get back on growth track after improvement in recent macro weakness, restating a target of RMB1 EBIT per order by 2025, and a long-term daily food delivery target of 100 million orders, reported Goldman Sachs.

The firm estimated a revenue CAGR of 25% for in-store, hotel and travel unit into 2025.

MEITUAN-W posted solid 3Q21 core operation but softer 4Q goals given a higher base last year.

Food delivery order growth will likely ease from 25% in 3Q to mid-teens.

Meanwhile, the firm foresaw the subsidy level to decline in the six months ahead.

The stock was retained at Buy with a $312 target.

Source: AAStocks Financial News

[winston]

not vested

Meituan (3690 HK)
Waiting Patiently Amid The Resurgence Of The Pandemic

Meituan plummeted by 9% following the move by Tencent to divest of its stakes in JD,
sparking concerns among investors that Meituan’s and other investees’ stakes could
be the next target.

The resurgence of the pandemic and lockdown measures will certainly add further uncertainty to the company’s near-term growth prospects, which
resulted in us cutting our target price to HK$190.00 (from HK$256.00).

We maintain HOLD on Meituan given the lack of catalyst in the near term.

Source: UOBKH

https://research.uobkayhian.com/content ... 2253555211

[winston]

not vested

C Suisse: Takeaway Orders Dented by Pandemic, Rider Shortage; Meituan Kept at Outperform

According to channel checks with food delivery agents in China, the recent deceleration in takeaway order volume, was primarily a combined result of the resurgence of COVID-19 outbreak (with relatively significant impact on remote cities), rider capacity shortage (especially in larger cities and southern provinces) and impact of reduced subsidies, reported Credit Suisse.

Although the industry growth is predicted to gradually moderate, further increase in order frequency, will continue to serve as a main driver for additional growth, the broker remarked.

As for market competition, the broker contended that, despite the progress of Ele.me has made, the overall competitive landscape remained stable, with MEITUAN-W (03690.HK) still viewed as a leading figure in terms of user traffic and market share.

The broker kept the Outperform rating for MEITUAN-W, with a target price of $290.

Source: AAStocks Financial News

[winston]

not vested

CLSA: MEITUAN-W (03690.HK) Faces Macro Econ Pressure, Restated Buy

MEITUAN-W (03690.HK)'s food delivery and in-store, as well as hotel and travel services, were hijacked by pandemic and macro economic slowdown, CLSA said in its report.

It was expected that the 4Q21 consolidated revenue will grow at a slower YoY rate of about 20%.

MEITUAN-W's adjusted EBIT may further worsen to negative RMB6.525 billion, in light of increased losses of new initiatives.

During the period, the community group-buy could narrow loss, while ride-hailing and insta-shopping could widen losses.

Related News: C Suisse: Takeaway Orders Dented by Pandemic, Rider Shortage; Meituan Kept at Outperform

Macro factors are projected to continue to weigh on 1Q22 results, but takeaway and in-store businesses are expected to resume rapidly, once macro condition improves. The rating was reiterated at Buy with target price of $370.

Source: AAStocks Financial News