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.

Jin Yoon
Meituan Dianping 3690 HK

New Street Research
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Jin Yoon

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