Meituan 3690

[winston]

Meituan (3690 HK): <Earnings First Take> 2Q22 turned profitable with stronger than expected revenue growth (+ve) [BUY, TP HK$226.00]

2Q22 Revenue increased by 16% y-o-y to Rmb50.9bn, above market consensus of 10% growth

Adjusted net profit was Rmb2.1bn, better than market anticipation of c.Rmb2bn loss

The outperformance in earnings was mainly due to better-than-expected cost control

Expect positive share price reaction to the robust 2Q22 performance

Source: DBS

[winston]

not vested

Brokers│Views

Jefferies│Business strategy on core local commerce showed immense market potential

Daiwa│2Q22 results significantly beat; overall break-even achieved

CICC│2Q22 results beat with resilient fundamentals

Goldman Sachs│Earnings saw turnaround; healthy recovery momentum paves way for strong quarterly results in the future

Credit Suisse│2Q22 results strong and ahead of forecasts

JPMorgan│Business development progressed steadily as COVID-related impact undermined competitive edge

BOCOM International│2Q22 results resilient; growth potential confirmed; kept as sector top pick with Buy rating

Nomura│Rapid recovery post-COVID-lockdowns driven by highly resilient business segments

China Securities│Focus on recovery trend; fading short-term non-fundamental disruptions

HSBC Global Research│Ready to cope with market competition

China Merchants Securities│Core local commerce segments tracked solid growth; results beat significantly

Morgan Stanley│Earnings recorded in 2Q22

BofA Securities│Efficiency and growth well balanced amid changes in external environment

DBS│Electronic groceries business as new revenue driver

Citigroup│Revenue and earnings beat; adjusted EBITDA and net profit turned positive

UBS│Earnings resumed in 2Q22 amid impact of COVID-lockdowns

Source; AAStocks Financial News

[winston]

not vested

G Sachs Cites MEITUAN: Operating Trends in Jul-Aug Encouraging; Delivery Order Expected to Maintain Over 20% Growth in Sep

The management of the company revealed yesterday at an investor briefing that, the operating trends in July and August have been encouraging, with the food delivery daily order volume growth recovering to more than 20% in August, compared to that of 10-13% in July and 10% in June, reported Goldman Sachs.

The management anticipated that the growth of the daily delivery order volume can be maintained at roughly 20% in September.

Goldman Sachs kept the Buy rating for the stock, with a target price of $275.

Source: AAStocks Financial News

[winston]

vested

Fitch: MEITUAN-W's Core Biz Will Drive Earnings Recovery

The momentum of MEITUAN-W (03690.HK)'s earnings recovery is likely to be sustained by the greater synergies from its hybrid online-offline model and further reduction of losses from new business initiatives, Fitch Ratings commented.

MEITUAN-W was considered to be on track to restore profitability in 2022.

Fitch added that it would consider revising the outlook on the company from Negative to Stable, should it manage to demonstrate a clear trend towards neutral cash flow.

Source: AAStocks Financial News

[winston]

not vested

M Stanley: MEITUAN-W (03690.HK) Fundamental Recovery Capability Beats Peers; Stock Remains Sector Top Pick

MEITUAN-W (03690.HK)'s fundamentals remain more resilience than its fellows amid pandemic, Morgan Stanley viewed.

As the group is undergoing cost optimization, the broker reiterated the stock as the sector top pick and kept TP at HK$240 and rating Overweight.

Thanks to food delivery volume growth of 17% YoY and IHT (in-store, hotel, & travel) revenue growth of 14%, the broker maintained the group's estimated core local commerce revenue for 3Q at RMB46.4 billion, up 25% YoY.

Morgan Stanley is pending a clearer COVID-exit roadmap from MEITUAN to propel better growth of the group.

The broker believed that the group's potential market value over the next three years is US$350 billion, or HK$450 per share in the most bullish case.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

vested

DBS: MEITUAN Wider Investment in New Biz To Become Next Driver, despite Near-term Pressure

The company's 2Q22 adjusted net profit was RMB2.1 billion, beating the consensus of a loss of RMB2 billion.

The broker forecast FY22F will turn profitable with adjusted net profit of about RMB3 billion (vs previous around RMB7 billion net loss) due to higher revenue growth and better margins.

The broker kept MEITUAN at Buy with TP of $296.

Underpinned by growing demand for MEITUAN E-Grocery (Meituan Maicai), the wider investment in new initiatives, despite exerting short-term margin pressure, will be the next driver on the back its country-wide offline network, boosting new initiative revenue to grow at about 37% p.a. during 2021-23F.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

MEITUAN(3690)

Analysis：

For the six months ended 30 June 2022, Meituan (3 690.HK) revenue amounted to RMB 97207.117 million, representing an increase of 20.3% YoY.

Operating loss amounted to RMB 6077.080 million, representing the operating loss decrease of 16.9% YoY.

Loss for the period amounted to RMB 6818.593 million, representing the loss for the period decrease of 16.9% YoY.

In the second quarter of 2022, number of transacting users and number of active merchants amounted to 648.7 million and 9.2 million respectively, representing an increase of 8.9% and 18.5% YoY.

Also, average number of transactions per annual transacting user amounted to 38.1, representing an increase of 16.2%.

Current China's epidemic prevention policies is positive to Meituan, it enhances the reliability from citizens to Meituan.

In addition, Meituan Youxuan's business relocated to supermarket sector recently. It aims to merge and develop e-commerce business, for the purpose of reducing the loss from original business.

New supermarket business will try to provide comprehensive products to cover more customers. we expected that this business relocation can improve Meituan's business performance and enter e- commerce business.

Strategy：
Buy-in Price: $146.00, Target Price: $168.00, Cut Loss Price: $135.00

Source: Phillips

[winston]

not vested

MEITUAN-W 3Q Swings to Profit of RMB1.216B; Non-IFRS Adj. NP RMB3.527B, Beating Forecast

MEITUAN-W (03690.HK) announced the financial results for the third quarter ended 30 September 2022.

The group recorded a profit of RMB1.216 billion, compared to the loss of RMB9.994 billion in the corresponding period of the previous year.

The non-IFRS adjusted net profit amounted to approximately RMB3.527 billion, ahead of the estimates of 11 brokers as compiled by our reporters (-RMB1.1 billion to RMB1.545 billion), compared to the adjusted net loss of RMB5.527 billion in the corresponding period of the previous year.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

not vested

3Q Results

Revenue: +28% yoy
Profit: RMB1.2b

https://www1.hkexnews.hk/listedco/listc ... 500392.pdf

[winston]

not vested

Meituan (3690 HK)
3Q22: Core Profit Exceeds Expectations; Soft Outlook For 4Q22

Meituan’s 3Q22 earnings exceeded expectations.

Total revenue grew 28% yoy to Rmb62.6b, in line with our and consensus estimates.

Core local commerce profit beat expectations with adjusted EBIT rising 123% yoy to Rmb9.3b, vs consensus estimates of Rmb8b, driven by strong food delivery and in-store profitability that resulted in operating margin improving to 20.1%.

Non-IFRS net profit was Rmb3.5b, vs a loss of Rmb5.5b in 3Q21, which translated to a non-GAAP net profit margin of 5.6%.

Maintain BUY with a lower target price of HK$200.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 2578243b97