reports
- Jin Yoon
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 rat...
- Julia Pan Mengyao
- Ming San Soong
Meituan (3690 HK): 3Q23: Solid results; Stabilising in-store market sh...
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.
- Julia Pan Mengyao
- Ming San Soong
- Terence Chiu
Greater China Daily: Wednesday, November 28, 2023
KEY HIGHLIGHTS Results Meituan (3690 HK/BUY/HK$103.00/Target: HK$171.00) 3Q23: Solid results; Stabilising in-store market share gain rival competitors. PDD Holdings (PDD US/BUY/US$117.72/Target: US$150.00) 3Q23: Revenue beat; overseas expansion a core growth pillar. TRADERS’ CORNER Bosideng International (3998 HK): Trading Buy range: HK$3.30-3.40 Skyworth Group Limited (751 HK): Trading Buy range: HK$3.05-3.10
- Arsit Pamaranont
- Desmond Chong Chee Wai
- Jacquelyn Yow Hui Li
- Jonathan Koh
- Julia Pan Mengyao
- Leow Huey Chuen
- Ming San Soong
- Philip Wong
- Posmarito Pakpahan
- Wei Xiang Ku
Regional Morning Notes - Wednesday, November 29, 2023
GREATER CHINA Results Meituan (3690 HK/BUY/HK$103.00/Target: HK$171.00): 3Q23: Solid results; Stabilising in-store market share gain rival competitors. PDD Holdings (PDD US/BUY/US$117.72/Target: US$150.00): 3Q23: Revenue beat; overseas expansion a core growth pillar. INDONESIA Results Bank Tabungan Negara (BBTN IJ/BUY/Rp1,395/Target: Rp1,700): 3Q23: Net profit up 24% qoq on higher NIM and lower CoC. MALAYSIA Results Farm Fresh (FFB MK/SELL/RM1.31/Target: RM1.00): 2QFY24: Earnings disappoint du...
- Julia Pan Mengyao
- Ming San Soong
China Internet: 3Q23 results preview: Solid e-commerce ad growth to dr...
We expect e-commerce ads and overseas e-commerce expansion to be the main driving forces spurring stagnant growth in 3Q23 and beyond. In addition, we are optimistic about the better-the-expected growth in game gross profit and on-track OTA data on the back of strong seasonality. We are also looking out for meaningful progress in AIGC development in 3Q23 and better visibility in 4Q23. Maintain MARKET WEIGHT on the internet sector.
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3690 MEITUAN DIANPING 3690 HK
700 HK TENCENT 700 HK
TCOM US TRIP.COM TCOM US
9988 ALIBABA (9988 HK)
9618 JD.COM INC
1024 KUAISHOU TECHNOLOGY
9888 BAIDU INC
PDD PINDUODUO PDD US
9999 HK NETEASE INC
780 TONGCHENG TRAVEL HOLDINGS LTD
9961 TRIP.COM GROUP LTD
- Julia Pan Mengyao
- Ming San Soong
China Internet: Strong growth in online ads and OTA likely to continue...
China’s internet sector delivered solid 2Q23 results with an earnings beat but this was followed by lukewarm 3Q23 guidance from most companies navigating macro uncertainty. In view of the intense competition and saturated growth, internet companies are ramping up AIGC investment and cross border expansion against a favourable regulatory backdrop. Maintain MARKET WEIGHT on the internet sector due to heavy investment in new initiatives leading to margin erosion.
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
00700 TENCENT HOLDINGS LTD.
1496219D BEIJING KUAISHOU TECHNOLOGY
3690 MEITUAN DIANPING 3690 HK
700 HK TENCENT 700 HK
TCOM US TRIP.COM TCOM US
9988 ALIBABA (9988 HK)
BEKE KE HOLDINGS INC
9618 JD.COM INC
1024 KUAISHOU TECHNOLOGY
9888 BAIDU INC
PDD PINDUODUO PDD US
9999 HK NETEASE INC
780 TONGCHENG TRAVEL HOLDINGS LTD
9961 TRIP.COM GROUP LTD
- Jin Yoon
Meituan 2Q23 Results: Food Delivery to Face ST Headwinds
What's new: Meituan’s reported 2Q23 results were above consensus and our expectations partly driven core local commerce. Food delivery could face short-term headwinds due to macro and extreme weather conditions in 3Q, while margins could further improve YoY driven by better operating efficiency. We maintain our PT at HKD250. Analysts: Jin Yoon
- Julia Pan Mengyao
- Ming San Soong
Meituan (3690 HK): 2Q23: Earnings beat; ISHT as the key growth pillar ...
Meituan’s 2Q23 earnings exceeded expectations. Total revenue grew 33.4% yoy to Rmb68b, in line with consensus estimates. Non-IFRS net profit was Rmb7.7b, which translated to a non-GAAP net profit margin of 11.3%. For 3Q23, Meituan expects growth in food delivery volume to alleviate due to tempered macro recovery and unfavourable weather conditions. We expect ISHT to maintain its rapid recovery trajectory in 3Q23 given strong seasonality. Maintain BUY with a higher target price of HK$210.00.
- Ariel Poh Yun Li
- Carol Dou Xiao Qin
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Ming San Soong
- Stella Guo Yuting
- Sunny Chen
- Terence Chiu
- Ziv Ang Sze Champ
Greater China Daily: Friday, August 25, 2023
KEY HIGHLIGHTS Results AAC Technologies (2018 HK/HOLD/ HK$15.56/ Target: HK$14.50) 1H23: Margins deteriorated further; better visibility of recovery in 2H23. AIA Group (1299 HK/BUY/ HK$69.95/Target: HK$95.00) 1H23: VONB in line; margin slumps a concern. Aier Eye Hospital Group (300015 CH/BUY/Rmb18.02/Target: Rmb26.00) 1H23: Satisfactory results; strong demand to further boost revenue growth. China Construction Bank (939 HK/BUY/HK$4.11/Target: HK$6.30) 1H23: Earnings continue to thrive despit...
XGH ENN ENERGY HOLDINGS LIMITED
0939 CHINA CONSTRUCTION BANK CORPORATION CLASS H
600809 SHANXI XINGHUACUN FEN WINE FACTORY CO. LTD. CLASS A
01299 AIA GROUP LIMITED
300015 AIER EYE HOSPITAL GROUP CO. LTD. CLASS A
A2XN AAC TECHNOLOGIES HOLDINGS INC.
3690 MEITUAN DIANPING 3690 HK
2269 WUXI BIOLOGICS CAYMAN INC
9999 HK NETEASE INC
- Anas Fitri Bin Ahmad
- Ariel Poh Yun Li
- Arsit Pamaranont
- Carol Dou Xiao Qin
- Greater China Research Team
- Jack Goh Tooan Orng
- Jacquelyn Yow Hui Li
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Leow Huey Chuen
- Llelleythan Tan Tan
- Malaysia Research Team
- Ming San Soong
- Paula Ruth
- Sunny Chen
- Vincent Khoo Boo Aik
- Ziv Ang Sze Champ
Regional Morning Notes - Friday, August 25, 2023
GREATER CHINA Results AAC Technologies (2018 HK/HOLD/ HK$15.56/ Target: HK$14.50): 1H23: Margins deteriorated further; better visibility of recovery in 2H23. AIA Group (1299 HK/BUY/ HK$69.95/Target: HK$95.00): 1H23: VONB in line; margin slumps a concern. Aier Eye Hospital Group (300015 CH/BUY/Rmb18.02/Target: Rmb26.00): 1H23: Satisfactory results; strong demand to further boost revenue growth. China Construction Bank (939 HK/BUY/HK$4.11/Target: HK$6.30): 1H23: Earnings continue to thrive despite...
ESSO ESSO (THAILAND)
01299 AIA GROUP LIMITED
300015 AIER EYE HOSPITAL GROUP CO. LTD. CLASS A
A2XN AAC TECHNOLOGIES HOLDINGS INC.
601939 CHINA CONSTRUCTION BANK CORPORATION CLASS A
ERAA ERAJAYA SWASEMBADA
TSI EMPERADOR
KLK KUALA LUMPUR KEPONG BHD
GENM GENTING MALAYSIA BHD
MAHB MALAYSIA AIRPORTS HLDGS BHD
3690 MEITUAN DIANPING 3690 HK
UMWH UMW HOLDINGS BHD
2269 WUXI BIOLOGICS CAYMAN INC
9999 HK NETEASE INC
- Greater China Research Team
- Julia Pan Mengyao
China Internet: 1Q23 results wrap-up: Surprising bottom line from e-co...
China’s internet sector had delivered better-than-expected 1Q23 result with earnings beat and solid 2Q23 guidance from most companies. Online ad, food delivery and property transaction services are among the key beneficiaries upon the resumption of offline activities. Online games’ 1Q23 results were largely in line with Netease as the top performer. We maintain MARKET WEIGHT on the internet sector due to heavy investment in new initiatives leading to margin erosion.
JD JD.COM INC. SPONSORED ADR CLASS A
K3SD BAIDU INC SPONSORED ADR CLASS A
A117ME ALIBABA GROUP HOLDING LTD. SPONSORED ADR
3K1 KINGSOFT CORP. LTD.
00700 TENCENT HOLDINGS LTD.
1496219D BEIJING KUAISHOU TECHNOLOGY
3690 MEITUAN DIANPING 3690 HK
700 HK TENCENT 700 HK
9988 ALIBABA (9988 HK)
BEKE KE HOLDINGS INC
9618 JD.COM INC
1024 KUAISHOU TECHNOLOGY
9888 BAIDU INC
PDD PINDUODUO PDD US
9999 HK NETEASE INC
- Greater China Research Team
- Julia Pan Mengyao
Meituan (3690 HK) - 1Q23: Robust Earnings Beat; Meituan FD Market Shar...
Meituan’s 1Q23 earnings exceeded expectations. Total revenue grew 26.7% yoy to Rmb58.6b, in line with our and consensus estimates. Core local commerce profit beat expectations with adjusted EBIT surging 100% yoy to Rmb9.4b, driven by strong food delivery and an expansion in in-store operating margin. Non-IFRS net profit was Rmb5.5b, vs a loss of Rmb3.6b in 1Q22, which translated to a non-GAAP net profit margin of 9.4%. Maintain BUY with a lower target price of HK$205.00.
- Carol Dou Xiao Qin
- Greater China Research Team
- Jo Yee Ng
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Kate Luang
- Kelvin Chau Siu Pong
- Stella Guo Yuting
- Sunny Chen
- Terence Chiu
Greater China Daily - Monday, May 29, 2023
KEY HIGHLIGHTS Sector Sportswear Potential upgrade of guidance a short-term catalyst; Anta as top pick. Results CSPC Pharmaceutical Group (1093 HK/BUY/HK$7.23/Target: HK$11.00) 1Q23: Revenue up 2.3% yoy; expecting significant recovery from 2Q23. Meituan (3690 HK/BUY/HK$126.00/Target: HK$205.00) 1Q23: Robust earnings beat expectations; Meituan’s FD market share back to 3:1 vs its rival’s. NetEase (9999 HK/BUY/HK$130.50/Target: HK$152.00) 1Q23: Solid beat; strong game pipeline amid solid margin e...
- Adrian Loh Tzum Yung
- Carol Dou Xiao Qin
- Greater China Research Team
- Jacquelyn Yow Hui Li
- Jo Yee Ng
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Kasemsun Koonnara
- Kate Luang
- Keith Wee Teck Keong
- Kelvin Chau Siu Pong
- Leow Huey Chuen
- Stella Guo Yuting
- Stevanus Juanda
- Sunny Chen
Regional Morning Notes - Monday, May 29, 2023
GREATER CHINA Sector Sportswear: Potential upgrade of guidance a short-term catalyst; Anta as top pick. Results CSPC Pharmaceutical Group (1093 HK/BUY/HK$7.23/Target: HK$9.00): 1Q23: Revenue up 2.3% yoy; expecting significant recovery from 2Q23. Meituan (3690 HK/BUY/HK$126.00/Target: HK$205.00): 1Q23: Robust earnings beat expectations; Meituan’s FD market share back to 3:1 vs its rival’s. NetEase (9999 HK/BUY/HK$130.50/Target: HK$152.00): 1Q23: Solid beat; strong game pipeline amid solid margin...
- Jin Yoon
Meituan 1Q23 Results: Continued Recovery in Demand
What's new: Meituan’s reported 1Q23 results were above consensus and our expectations. Overall demand environment could continue to recover on a sequential basis, while the company may increase spending in areas such as live streaming and subsidies to stimulate consumption recovery. We maintain our PT at HKD250. Analysts: Jin Yoon
- Jin Yoon
Meituan: 4Q22 Results - Demand Recovery on Track
What's new: Meituan’s reported 4Q22 top line results were above consensus and our expectations. Despite tougher comps in the first two months of the year, core local commerce continues to improve on a sequential basis where segments such as food delivery has fully recovered in recent weeks. However, incremental spending to stimulate the consumption recovery coupled with competition could potentially weigh down on margins – especially for the in-store, hotel and travel segment. We maintain our PT...
- Julia Pan Mengyao
Meituan (3690 HK): 4Q22: Solid beat; stronger outlook in 1Q23; increas...
Meituan’s 4Q22 earnings exceeded expectations. Total revenue grew 21% yoy to Rmb60b, above our and consensus estimates. Core local commerce profit beat expectations with adjusted EBIT rising 49% yoy to Rmb7.6b, driven by strong food delivery and an improvement in in-store operating margin. Non-IFRS net profit was Rmb829m, vs a loss of Rmb3.9b in 4Q21, which translated to a non-GAAP net profit margin of 1.4%. Maintain BUY with a lower target price of HK$213.00.
- Ariel Poh Yun Li
- Jo Yee Ng
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Kate Luang
- Kelvin Chau Siu Pong
- Roy Chen Chengzhi
- Terence Chiu
- Zhifeng Shen
Greater China Daily: Monday, March 27, 2023
KEY HIGHLIGHTS Results China Resources Beer (291 HK/BUY/HK$62.90/Target: HK$77.00) 2022: Results beat estimates; expect stellar performance in 1Q23. Meituan (3690 HK/BUY/HK$140.20/Target: HK$213.00) 4Q22: Solid beat; stronger outlook in 1Q23; increasing competition with Douyin. Orient Overseas (International) (316 HK/HOLD/HK$150.50/Target: HK$140.50) 2022: Results beat due to better-than-expected cost control; outsized final dividend unlocking shareholder value. Upgrade to HOLD. Xiaomi Corp ...
- Adrian Loh Tzum Yung
- Ariel Poh Yun Li
- Jacquelyn Yow Hui Li
- Jo Yee Ng
- Johnny Yum
- Johnny Yum Chung Man
- Julia Pan Mengyao
- Kate Luang
- Kelvin Chau Siu Pong
- Kochakorn Sutaruksanon
- Leow Huey Chuen
- Roy Chen Chengzhi
- Stevanus Juanda
- Zhifeng Shen
Regional Morning Notes - Monday, March 27, 2023
GREATER CHINA Results China Resources Beer (291 HK/BUY/HK$62.90/Target: HK$77.00): 2022: Results beat estimates; expect stellar performance in 1Q23. Meituan (3690 HK/BUY/HK$140.20/Target: HK$213.00): 4Q22: Solid beat; stronger outlook in 1Q23; increasing competition with Douyin. Orient Overseas (International) (316 HK/HOLD/HK$150.50/Target: HK$140.50): 2022: Results beat due to better-than-expected cost control; outsized final dividend unlocking shareholder value. Upgrade to HOLD. Xiaomi Corp (1...
- Julia Pan Mengyao
Meituan (3690 HK): 4Q22 results preview: 4Q22 to remain under pressure...
The encouraging recovery in consumer sentiment as a result of China’s full reopening should bode well for Meituan. Despite the entry of new competitive rivals, we think Meituan can outperform in recovery and growth trajectory given the food delivery business’ high barriers of entry. Meituan has robust growth potential as local services is a large vertical with ample room for online digitalisation. Maintain BUY. Target price: HK$221.00.
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