Meituan 3690

[winston]

not vested

M Stanley: Neil Shen's Stake Cut in MEITUAN Adverse for Mkt Mood; Best Revival Play Post-CN Plague; Restated Top-pick

Neil Shen, non-executive director of MEITUAN-W (03690.HK) and founding and managing partner of Sequoia Capital China, made both on-market and off-market disposals of MEITUAN-W shares last week.

Seeing certain negative impact from the above deals on investment sentiment, however, Morgan Stanley continued to regard MEITUAN-W as the China Internet top-pick for its solid fundamentals.

It will be the best play under the reopening/recovery theme alongside Covid control easing and potential travel curb removal.

Overall, MEITUAN-W was restated Overweight at a target price of $240.

MEITUAN-W should have a faster core growth than TENCENT (00700.HK), BABA-SW and BIDU-SW (09888.HK)do, and a lower regulatory risk as compared with China's online game sector.

It has lower competitive risk against other e-commerce firms. The broker projected an inflection point for MEITUAN-W's operating profit, net profit and free cashflow by 2023.

Source: AAStocks Financial News

[winston]

not vested

MEITUAN-W Founds Internet Hospital in Chengdu

Chengdu Jinniu Baishou Internet Hospital Co., Ltd., a company indirectly wholly-owned by MEITUAN-W (03690.HK) 's affiliate Shanghai Sankuai Technology, was officially founded last Friday (13th), with a registered capital of RMB1 million, according to data from Qcc APP.

The operation of the newly-established company includes internet hospital services conducted through partnership with physical hospitals, medical services, internet information services, internet information services concerning medical products and equipment, as well as healthcare consultations, etc.

Source: AAStocks Financial News

[winston]

not vested

M Stanley: MEITUAN-W Expands Service Matrices; Meituan Select Expected to Break even in 2024

2022/05/20

MEITUAN-W (03690.HK) is pioneering online food delivery and local service platform in China, harnessing technology to connect consumers with merchants, Morgan Stanley said in a report yesterday.

Under the "Retail + Technology" corporate strategy, the company has been expanding its good and services matrices and enhancing service quality.

In terms of new initiatives, the broker estimated Meituan Select under MEITUAN-W to break even in 2024, and the gross merchandise volume (GMV) to reach RMB350-400 million by 2025 and GPM of gross transaction value (GTV) to hit 1%.

Meituan Grocery was also estimated to break even in 2025.

In its report dated 17 May, Morgan Stanley rated MEITUAN-W at Overweight with target price of $240.

Source: AAStocks Financial News

[winston]

not vested

Brokers See MEITUAN's 1Q Loss to Widen over 20%; Focus on CGB Biz Tweaks

MEITUAN-W (03690.HK) will report the results for the first quarter ended 31 March 2022 next Thursday (2 June).

According to the forecasts of 12 brokers, as compiled by our reporters, the non-IFRS adjusted net loss of MEITUAN-W in 1Q22 will range between RMB3.894 billion and RMB5.099 billion, widening by 0.05-31% YoY from that of RMB3.892 billion in 1Q21.

The median was estimated to expand by 24.6% YoY to a loss of RMB4.848 billion.

According to six brokers, the 1Q22 loss of MEITUAN-W will amount to RMB5.738-6.458 billion, deepening by 18.4-33.3% YoY from that of RMB4.846 billion in 1Q21. The median was estimated to expand by 25.7% YoY to a loss of RMB6.0935 billion.

Related News - M Stanley: MEITUAN-W Expands Service Matrices; Meituan Select Expected to Break even in 2024

Investors will focus on the latest business strategy of Meituan Select after its exit from markets such as Gansu and Qinghai, as well as its product SKU (stock keeping unit) adjustments and attempts to enhance economies of scale and return on investment (ROI).

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Brokers│1Q22E Non-IFRS Adjusted Net Loss (RMB)│YoY Change
UBS│3.894 billion│+0.05%
Citigroup│4.189 billion│+7.6%
CICC│4.264 billion│+9.6%
Morgan Stanley│4.36 billion│+12%
Guosen Securities│4.379 billion│+12.5%
CCB International │4.806 billion│+23.5%
China Merchants Securities│4.89 billion│+25.6%
Shenwan Hongyuan│5 billion│+28.5%
China Securities│5 billion│+28.5%
CMB International│5.026 billion│+29.1%
BOC International │5.093 billion│+30.9%
BOCOM International│5.099 billion│+31%

Based on the 1Q21 non-IFRS adjusted net loss of RMB3.892 billion.
--------------------------------------------------------------
Brokers│1Q22E Loss (RMB)│YoY Change
CICC│5.738 billion│+18.4%
BOCOM International │5.925 billion│+22.3%
CMB International│6.006 billion│+23.9%
CCB International │6.181 billion│+27.5%
ICBC International│6.251 billion│+29%
BOC International │6.458 billion│+33.3%

Based on the 1Q21 loss of RMB4.846 billion.

Source: AAStocks Financial News

[winston]

not vested

MEITUAN B&B Unit Forms Team to Help Airbnb Landlords in CN

MEITUAN-W (03690.HK)'s bed and breakfast (B&B) platform said that it will form a landlord services team to help Airbnb (ABNB.US) landlords of hostels in China transit after the latter announced a suspension of mainland services at the end of July.

Source: AAStocks Financial News

[winston]

not vested

Meituan sales beat after new business offsets China slowdown

by Coco Liu

(June 2): Meituan’s quarterly revenue grew 25%, after the Chinese food delivery titan withstood the economic fallout from coronavirus-related lockdowns in cities such as Shanghai.

Revenues exceeded the average analysts’ estimate of 45.3 billion yuan, but marked the slowest pace of growth for the company in almost two years.

Quarterly sales from Meituan’s core food delivery business matched analyst projections. climbing 17% to 24.2 billion yuan, while its in-store, hotel and travel unit generated revenue of 7.6 billion yuan, up 16%.

Its net loss widened to 5.7 billion yuan, versus the market estimate for a 6 billion yuan loss.

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... a-slowdown

[winston]

not vested

Meituan (3690 HK)
1Q22: Better-than-expected Results; Key Proxy To Consumption Recovery

Meituan’s 1Q22 earnings were better than expected.

Total revenue grew 25% yoy to Rmb46.3b, in line with our and consensus estimates.

The FD and ISHT segments reported adjusted EBIT of Rmb5.1b, with EBIT margin of 6.5% and 46%, beating our expectations.

The NIO segment’s EBIT loss narrowed qoq to Rmb9b.

Group adjusted EBIT loss was Rmb4.0b and net loss was Rmb3.6b, better than the company’s previous guidance.

We maintain BUY with a higher target price of HK$225.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 226ccf60bf

[winston]

not vested

Brokers│Views

Jefferies│various units show strong execution

Haitong International│OPM improves, rev impact under control

CLSA│focuses on high-quality growth

Daiwa│focuses on UE improvement

CICC│focuses on high-quality growth; monetization level, profit poised to beat forecasts

DBS│2Q outlook cautious; 2H biz shall improve

Goldman Sachs│core earnings beat; still enhances UE amid Covid

Nomura│takeaway biz resilient, tops consensus; 2Q result guidance still beats

GF Securities│sharper Covid impact in 2Q ; earnings potential still releasing

CMS│principal biz resilience changing under Covid

Morgan Stanley│QoQ result beats, to gradually improve in future

BofA Securities│solid execution amid Covid

CMS International│QoQ result foretells high-quality growth outlook

JPMorgan│solid core biz ensures strong rev revival visibility post-Covid

Citigroup│QoQ result solid, Covid impact priced in

Macquarie│major biz profitability higher

HSBC Global Research│can ride on CN econ revival

UBS│QoQ result rides on takeaway demand revival, UE improvement

CSC Financial│Covid disruption inevitable; focuses on long-term, high-quality biz growth

Source: AAStocks Financial News

[winston]

not vested

Meituan (3690 HK) - Cautiously optimistic on potential recovery ahead

Meituan’s 1QFY22 results came in better than expectations.

Food Delivery (FD) EBIT per order of CNY0.47 was resilient on the back of lower subsidies per order and lower rider costs.

Meituan also achieved an adjusted EBIT margin of 45.6%, +3.9 percentage points (ppts) year-on-year (YoY), for its in-store, hotel & travel segment, which we attribute to improved efficiency, tighter promotions and incentives, as well as smaller contributions from hotels (which command lower margins).

Overall, adjusted net loss of CNY3.6b was milder than consensus.

While Covid-19 restrictions have impacted FD, dining-in, and inter-city travel, management noted a turnaround in May 2022 with the trend likely to continue seeing improvement in June 2022.

In our view, it appears that Meituan is focusing more on profitability this year, as seen from its YoY margin expansion across its core businesses as it spends more selectively on higher margin areas.

Importantly, management reiterated its target of achieving adjusted EBITDA breakeven in 2022, which we think could see loss reduction from new initiatives offsetting any softness in its core businesses due to Covid-19.

All considered, we believe that management’s comments on the near-term pick up and focus on cost optimization and efficiency in new businesses are encouraging, while ability to keep FD unit economics robust during a soft quarter should help to give the market further confidence in its longer-term target of CNY1 per order.

Following adjustments while still maintaining our ESG premium of 10%), our FV rises from HKD216 to HKD243. BUY.

Source: OCBC

[winston]

not vested

G Sachs Cites Meituan: Delivery Biz to Post Single-digit Growth in Jun; High-quality Growth Strategy This Yr

MEITUAN-W remained highly confident in its long-term growth potential and is planning to adopt a specific strategy to pursue high-quality growth this year, reported Goldman Sachs, citing the management of the company.

As for the food delivery segment, the management anticipated that the volume of food delivery orders will likely remain flattish YoY in 2Q22 while achieving a single-digit growth in June.

Believing that they are on track to achieve a balance between growth and unit economics improvement, the management of MEITUAN-W forecast that the operating loss will narrow by RMB500 million to RMB1 billion per quarter.

Goldman Sachs rated MEITUAN-W at Buy, with its target price kept at HKD252.

Source: AAStocks Financial News