Meituan 3690

[winston]

Resilient during the Omicron lockdown

Meituan reported that 1Q22 revenue grew by 25% yoy to Rmb46.3bn, slightly better
than we expected, due to resilient food delivery revenue growth.

The non-GAAP net loss was Rmb3.6bn, narrowing by 7.8% yoy, in line with our
expectation.

Management guided flattish adjusted EBITDA yoy in FY22F.

Management said that food delivery order volume was expected to remain flattish
yoy in 2Q22F and that revenue was expected to grow by 9–10% yoy.

Reiterate Add with a new DCF-based TP of HK$220, as we expect its investment in its
retail business and other new initiatives to drive long-term growth.

Source: UOBKH

https://rfs.cgs-cimb.com/api/download?f ... F7041A1424

[winston]

not vested

M Stanley Restates MEITUAN-W (03690.HK) as Sector Top Pick; Core Biz Growth May Outpace Peers

JD-SW (09618.HK)'s foray into food delivery should pose limited threat on MEITUAN-W (03690.HK) in view of the latter's strong competitive edges in local services, Morgan Stanley mentioned in its report.

The broker stayed bullish on MEITUAN as the beneficiary of China's reopening theme.

Restated that MEITUAN was its China Internet's top pick, HSBC Global Research kept the stock rating at Overweight with target price of $240.

Given the short-term catalysts from reopening, longer term potential from under-appreciated in-store and new initiative businesses, the broker was still sanguine on MEITUAN's long-term prospect.

Under the broker's bull case, the company's market value was forecast to whop US$350 billion (HK$450 per share) over the next three years.

The broker believed that MEITUAN's core businesses grew faster than TENCENT (00700.HK)'s gaming business, BABA-SW (09988.HK)'s e-commerce and BIDU-SW (09888.HK) 's marketing.

The lower regulatory risk of MEITUAN's food delivery than gaming and entertainment businesses was certainly a bonus. If comparing with China's e-commerce, the competitive risk of MEITUAN was lower.

Source; AAStocks Financial News

[winston]

C Suisse Sees MEITUAN-W 2Q Adj. Net Loss to Trim to RMB2B, Rating Outperform

Credit Suisse forecast MEITUAN-W (03690.HK)'s 2Q revenue to gain 13% YoY to RMB49.5 billion, and the adjusted net loss to trim to RMB2 billion.

Despite an only 3% sales growth, the broker expected the company's food delivery revenue to grow 13% YoY, thanks to higher average order value (AOV) and lower subsidies.

The unit profit was projected to reach RMB0.93 per order, implying a 13% OPM.

Since the recovery has been faster than expected so far, Credit Suisse moved up MEITUAN's EPS forecasts for 2022-24 by 3-8%.

The broker stayed upbeat on the company in view of relative under-penetration of local services space, still favorable competition and strong execution. The target price was kept at $245 with rating Outperform.

Source: AAStocks Financial News

[winston]

not vested

CLSA Foresees MEITUAN-W (03690.HK) 2Q LBIT to Trim to RMB2B, Rating Buy

MEITUAN-W (03690.HK)'s 2Q22 performance was expected to have been severely hampered by the COVID-19 outbreak, with its total revenue rising by merely 12.8% YoY to RMB49.4 billion, reported CLSA.

Given the reduced subsidies, tightening cost control and lower losses from new initiatives, the adjusted LBIT may narrow to RMB2 billion, a QoQ contraction of RMB2 billion.

CLSA contended that MEITUAN-W may encounter macroeconomic uncertainties in 3Q22, with its total revenue growth potentially only improving slightly to a YoY increase of 17%.

The adjusted LBIT, on the other hand, was forecast to be flattish or decline QoQ amid the weak seasonality.

Related News: Jefferies Raises MEITUAN-W (03690.HK) TP to $326, Rating Buy

The broker chopped the 2022-23E total revenue for the group by 1% each and the adjusted net profit by 0% and 4%, respectively. The stock was reiterated at Buy, with a target price of $310.

Source: AAStocks Financial News

[winston]

not vested

2Q22 Results Preview: Near-term Outlook Dampened By Zero-COVID Policy

We think Meituan is well-positioned to capture the economic recovery amid the
reopening in multiple regions.

Despite the ongoing Zero-COVID policy hampering domestic consumption recovery, there could still be potential upside after 2Q22.

We still like the company given the reduced price war in the FD business and the high
barriers of entry into the business.

Local services remains one of the large verticals with ample room for online digitalisation.

Maintain BUY. Target price: HK$237.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 00a1ec27a3

[winston]

JPM Expects MEITUAN-W (03690.HK) 2Q Net Loss at RMB2.6B, Rev. to Rise 11% YoY

2022/08/04

JP Morgan assumed potential upside risk on MEITUAN-W (03690.HK)'s consensus 2Q22 forecasts, in wake of China's consumption recovery from end-2Q, more benign rivalry and the group's efforts in cost optimization.

In the broker's view, the near-term financials and investor sentiment on China consumer Internet names may be stirred by rising macro uncertainties.

Yet, it believed the company to offer the clearest visibility to capture China's consumption recovery post pandemic in 2Q, harnessing the group's execution capability, in addition to better competition and regulatory environment.

JP Morgan expected MEITUAN's total revenue to rise 11% YoY to RMB48.4 billion, roughly in line with consensus.

It also forecast the company's 2Q net loss at RMB2.6 billion, more than the RMB2.1 billion net loss in consensus.

The broker reiterated the company at Overweight with target price of $225.

Source: AAStocks Financial News

[winston]

EXCLUSIVE-Tencent plans to divest $24 bln Meituan stake -sources

By Julie Zhu and Kane Wu

HONG KONG, Aug 16 (Reuters) - China's Tencent Holdings0700.HK plans to sell all or a bulk of its $24 billion stake (17%) in food delivery firm Meituan 3690.HK to placate domestic regulators and monetise an eight-year-old investment, foursources with knowledge of the matter said.

Tencent is seeking to kick off the sale within this year if market conditions are favourable, said two of the sources.

The value of its share holdings in listed companies excluding its subsidiaries dropped to just $89 billion as of end-March from $201 billion in the same period last year, according to its quarterly reports.

Tencent has not pinned the sale of JD.com and SEA stakes on the regulatory crackdown. T

he potential sale of the Meituan holding will likely be executed via a block trade in the public market which typically takes a day or two from marketing to completion, according to two of the sources.

Source: Reuters

[winston]

vested

TENCENT PR GM Reportedly Clarifies Rumored Sale of MEITUAN Stake as False

Sources close to TENCENT (00700.HK) revealed that the market rumor of TENCENT planning to sell all or a bulk of its stake in MEITUAN-W (03690.HK) is false, and that the group currently has no plan to dispose its shareholding in the food delivery firm, reported cs.com.

Zhang Jun, General Manager of Public Relations at TENCENT, indirectly clarified that the above-mentioned rumor is false by saying that "it is not the first time for said foreign media agency (cs.com) to spread false information about Chinese companies", the report added.

Source; AAStocks Financial News

[winston]

not vested

Meituan Sales Beat as Chinese Appetite for Meal Takeout Intact

by Jane Zhang and Coco Liu

16% increase in quarterly revenue; Sales rose to 50.9 billion yuan ($7.4 billion) during the three months ended June, versus an average projection for 48.6 billion yuan.

It logged a net loss of 1.12 billion yuan, the seventh consecutive quarter in the red,

Source: Bloomberg

https://finance.yahoo.com/news/meituan- ... 00201.html

[winston]

not vested

Meituan sales beat as Chinese appetite for meal take-out intact

by Jane Zhang & Coco Liu

16% increase in quarterly revenue.

Net loss of 1.12 b yuan, the seventh consecutive quarter in the red.

Folded its food delivery, hotels and other commerce businesses into a new division it dubbed “core local commerce”, which grew 9.2% in the quarter.

Source: Bloomberg

https://www.theedgemarkets.com/article/ ... out-intact