Meituan 3690

[winston]

vested

Earnings Alert: 4Q23 revenue grew 23%; expect continuously growing demand for ‘everything home’

4Q23 revenue grew by 23%, in line

Adjusted earnings surged more than 4-fold to Rmb4.4bn, beating market expectations on higher-than-expected gross margin

Raising FY24F/25F adjusted earnings by 2%/3% on reduced losses in new initiatives segment

Maintain BUY on growing demand for ‘everything home’; TP at HK$139

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18789

[winston]

Moody's Changes Outlook on MEITUAN-W (03690.HK) Ratings to Positive, Affirms Baa3 Rating

Moody's announced to change the outlook on MEITUAN-W (03690.HK) ratings to positive from stable. At the same time, Moody's affirmed MEITUAN-W's Baa3 issuer rating and senior unsecured ratings.

Ying Wang, vice president and senior analyst at Moody's, said the positive outlook reflected the faster-than-expected deleveraging trend of MEITUAN-W, as well as the better market position in its core food delivery and in-store, hotel and travel service operations.

Related News: BOCI Trims MEITUAN-W (03690.HK) TP to $164; Offline Consumption Recovers but Rivalry Escalates

The company was expected to enhance its earnings performance and improve its credit profile by maintaining a solid and strong operating performance in its core businesses and further reducing operating losses in its new initiatives.

Moody's expected MEITUAN-W's adjusted EBITDA margin to gradually hike to 10% over the next 12-18 months, while revenue growth will subside to 10%-15% per annum over the next 2-3 years as a result of a possible structural slowdown in the Chinese economy.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

MEITUAN(3690)

Analysis：

Meituan is a leading e-commerce platform for lifestyle services in China, providing services to meet people`s daily "food" needs and further expanding to various lifestyle and tourism services.

The company announced its financial report for the fourth quarter of 2023:
Revenue of 73.7 billion yuan, a yoy+23%;
Adjusted net profit of 4.4 billion yuan;
Operating profit was 1.76 billion yuan.

Among them, the core local commercial revenue was 55.13 billion yuan, yoy+26.8% and the operating profit was 8.02 billion yuan, yoy+11.1%, both exceeding market expectations;

New business revenue of 18.57 billion yuan, YOY+11.5%, and operating loss of 4.83 billion yuan.

The operating profit margin was -26.0%, narrowing 12.8pcts yoy, and the loss reduction exceeded expectations.

Strategy：
Buy-in Price: $116, Target Price: $142, Cut Loss Price: $103

Source: Phillips