New Street Research - Meituan Dianping 3690 HK (3690) New Street: Meituan 1Q21 Earnings - Investments in Meituan Select to Weigh on Margins

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New Street Research

Jin Yoon

New Street: Meituan 1Q21 Earnings - Investments in Meituan Select to Weigh on Margins

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

01/06/2021 7 EN

Underlying

Meituan Dianping 3690 HK

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New Street Research

Provided by our team of experienced analysts, our work is idea driven, based on independence of thought, sector expertise, and firmly focussed on fundamentals and valuation.

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Pan European Telecom Services and Cable

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Analysts

Jin Yoon

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Meituan 3Q23 Results: Further Investments in 4Q

What’s new: Meituan’s reported 3Q23 top-line results were largely in-line with consensus and our expectations. Food delivery growth could slightly decelerate in 4Q (compared to 3Q) partly due to higher contribution from SME orders and increase in subsidies to stimulate demand recovery. We lower our PT from HKD250 to HKD200 as investments in core local commerce and new initiatives may continue to weigh down on margins. Our revised PT of HKD200 implies a 3.3x FY24E EV/Revs. We maintain our BUY rating.

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Meituan (3690 HK): 3Q23: Solid results; Stabilising in-store market share gain rival competitors.

Meituan delivered solid 3Q23 results. Total revenue grew 22% yoy to Rmb76.2b, in line with consensus estimates. Non-IFRS net profit was Rmb5.7b, translating to a non- GAAP net profit margin of 7%. For 4Q23, Meituan expects growth in food delivery volume to moderate due to a tempered macro recovery and seasonality. We expect ISHT to maintain its solid recovery trajectory in 4Q23. Maintain BUY with a lower target price of HK$171.00.

November 29, 2023 November 29, 2023 1 EN

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Greater China Daily: Wednesday, November 28, 2023

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New Street: Meituan 1Q21 Earnings - Investments in Meituan Select to Weigh on Margins

Meituan 3Q23 Results: Further Investments in 4Q

Meituan (3690 HK): 3Q23: Solid results; Stabilising in-store market share gain rival competitors.

Greater China Daily: Wednesday, November 28, 2023

SATS, Carr, and the Art of the No Deal…Yet

Supreme Court Upholds USF Framework but Reform Still Ahead

CMCSA quick hit: Comcast continues to make the right pricing moves

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