Meituan Dianping 3690 HK

  • Ticker3690
Jin Yoon
  • Jin Yoon

New Street: Meituan 2Q21 Earnings - Despite Strength in Top Line, Marg...

What's new: Meituan reported 2Q21 top-line results were above consensus and our estimates driven by resiliency across the major business segments. Operating losses in new initiatives including Meituan Select could further accelerate in 3Q as the company continues to build out infrastructure to drive growth which could weigh down margins in the near-term. We lower our PT from HKD350 to HKD300 on continued margin pressures related to ongoing investments and increasing operating costs. Our new PT of HKD300 implies a 5.9x EV/Sales multiple on FY22 revenues. Analysts: Jin Yoon

Chun Sung Oong ... (+2)
  • Chun Sung Oong
  • Julia Pan Mengyao

Meituan (3690 HK) : 2Q21: Solid core business performance; To empower ...

Meituan reported solid 2Q21 results. Total revenue grew 77% yoy to Rmb43.8b, 3-4% higher than our and consensus estimates. The company delivered adjusted operating loss and adjusted net loss of Rmb3.1b/Rmb2.2b respectively as a result of widened losses from its NIO segment as well as higher S&M spending. Management guided that the SAMR investigations are still ongoing and it remains uncertain on the timing and amount of the fines. We maintain HOLD with a higher target price of HK$242.00.

Julia Pan Mengyao
  • Julia Pan Mengyao

Meituan (3690 HK) : Guidelines on protecting the rights and interests ...

SAMR has released detailed guidelines on protecting the rights and interests of >200m food delivery riders. Local governments are requested to progressively implement specific measures. Platforms are required to make changes to improve driver safety, including reducing pressure for fast deliveries, and to offer better dispute resolution processes. The guideline aims to boost flexible employment, create new job opportunities and lift people’s income, Maintain HOLD. Lower target price to HK$209.00. Entry price: HK$190.00.

Julia Pan Mengyao
  • Julia Pan Mengyao

China Internet: Collaboration is better than competition. MARKET WEIGH...

According to the Wall Street Journal, Alibaba and Tencent are considering gradually opening up their ecosystems to one another in a move that could bode well in the current intense regulatory landscape. The news comes as no surprise to us given that Alibaba’s app has been enabled on WeChat mini-programs such as Ele.me and Hema Grocery. We think Alibaba will benefit from this collaboration as it can tap into WeChat’s 1.2b MAU while Tencent will benefit should its consumers be allowed to use Alipay on WeChat. Maintain MARKET WEIGHT.

Jin Yoon
  • Jin Yoon

New Street: Meituan 1Q21 Earnings - Investments in Meituan Select to W...

What's new: Meituan reported 1Q21 top-line results were largely in-line with our estimates. We expect continued investments in New Initiatives including Meituan Select as the company continues to build out infrastructure to support business growth momentum but could weigh down margins in the near-term. We maintain our PT at HKD350. Our PT of HKD350 implies a 7.1x EV/Sales multiple on FY22 revenues. Analysts: Jin Yoon

Jin Yoon
  • Jin Yoon

New Street: Meituan 2Q21 Earnings - Despite Strength in Top Line, Marg...

What's new: Meituan reported 2Q21 top-line results were above consensus and our estimates driven by resiliency across the major business segments. Operating losses in new initiatives including Meituan Select could further accelerate in 3Q as the company continues to build out infrastructure to drive growth which could weigh down margins in the near-term. We lower our PT from HKD350 to HKD300 on continued margin pressures related to ongoing investments and increasing operating costs. Our new PT of HKD300 implies a 5.9x EV/Sales multiple on FY22 revenues. Analysts: Jin Yoon

Chun Sung Oong ... (+2)
  • Chun Sung Oong
  • Julia Pan Mengyao

Meituan (3690 HK) : 2Q21: Solid core business performance; To empower ...

Meituan reported solid 2Q21 results. Total revenue grew 77% yoy to Rmb43.8b, 3-4% higher than our and consensus estimates. The company delivered adjusted operating loss and adjusted net loss of Rmb3.1b/Rmb2.2b respectively as a result of widened losses from its NIO segment as well as higher S&M spending. Management guided that the SAMR investigations are still ongoing and it remains uncertain on the timing and amount of the fines. We maintain HOLD with a higher target price of HK$242.00.

Julia Pan Mengyao
  • Julia Pan Mengyao

Meituan (3690 HK) : Guidelines on protecting the rights and interests ...

SAMR has released detailed guidelines on protecting the rights and interests of >200m food delivery riders. Local governments are requested to progressively implement specific measures. Platforms are required to make changes to improve driver safety, including reducing pressure for fast deliveries, and to offer better dispute resolution processes. The guideline aims to boost flexible employment, create new job opportunities and lift people’s income, Maintain HOLD. Lower target price to HK$209.00. Entry price: HK$190.00.

Julia Pan Mengyao
  • Julia Pan Mengyao

China Internet: Collaboration is better than competition. MARKET WEIGH...

According to the Wall Street Journal, Alibaba and Tencent are considering gradually opening up their ecosystems to one another in a move that could bode well in the current intense regulatory landscape. The news comes as no surprise to us given that Alibaba’s app has been enabled on WeChat mini-programs such as Ele.me and Hema Grocery. We think Alibaba will benefit from this collaboration as it can tap into WeChat’s 1.2b MAU while Tencent will benefit should its consumers be allowed to use Alipay on WeChat. Maintain MARKET WEIGHT.

Jin Yoon
  • Jin Yoon

New Street: Meituan 1Q21 Earnings - Investments in Meituan Select to W...

What's new: Meituan reported 1Q21 top-line results were largely in-line with our estimates. We expect continued investments in New Initiatives including Meituan Select as the company continues to build out infrastructure to support business growth momentum but could weigh down margins in the near-term. We maintain our PT at HKD350. Our PT of HKD350 implies a 7.1x EV/Sales multiple on FY22 revenues. Analysts: Jin Yoon

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