Quick Look from Major Banks | PDD's Target Price Raised by 51%! MEITUAN-W's Rating and Target Price Both Slashed
Morgan Stanley has downgraded its rating on MEITUAN-W from "Buy" to "Neutral" and lowered the target price from HKD 195 to HKD 100, a decrease of 49%. The bank believes that MEITUAN-W has been unable to narrow the losses in its new business segment over the past seven quarters, which raises concerns about the financial returns on its recent and long-term investments in community group buying.
Macquarie: Gives PDD a "Outperform" rating, raises target price by 51% to $190
Based on the latest closing price of $141.73, this price implies a 34% upside!
PDD's third-quarter revenue increased by 94% YoY to RMB 68.8 billion; adjusted net profit exceeded the bank's and market expectations by 33% and 34% respectively, demonstrating a balanced strategy between the domestic market and overseas expansion. The bank remains optimistic about the group and expects its revenue to increase by 48% YoY in 2024, with adjusted net profit potentially reaching RMB 82 billion.
The bank expects Temu's GMV to reach $36 billion in 2024, contributing 26% to the group's revenue. The bank has raised its adjusted EPS forecasts for the group for fiscal years 2023 to 2025 by 21%, 55%, and 62% respectively to reflect strong business prospects.
JPMorgan: Downgrades MEITUAN-W from "Overweight" to "Neutral", lowers target price by 49% to HKD 100
Based on the latest closing price of HKD 90.6, this price implies a 10% upside!
The bank stated that concerns over weak consumer demand, intensified competition, and the low efficiency of the community group-buying business have led to a 31% decline in MEITUAN-W's forecasted P/E ratio for next year.
The bank also pointed out that MEITUAN-W has been unable to narrow the losses in its new business segment over the past seven quarters, raising concerns about the financial returns on investment in the community group-buying business in the short and long term. The bank has lowered its earnings forecast for MEITUAN-W for next year by 24%.
Bank of America: Reiterates "Buy" rating for Bilibili, lowers target price by 15% to HKD 131
Based on the latest closing price of HKD 89.9, this price implies a 46% upside!
Bilibili's third-quarter performance was in line with expectations. Despite the continued weakness in the gaming business, the company maintains its target of narrowing losses for the full year of 2023 and achieving a balance between revenue and expenses next year.
The bank expects Bilibili's advertising and live broadcasting businesses to continue driving revenue growth, while the gross profit margin of its core business will improve, mainly due to the relatively high profit margin of new advertising products and optimization of the revenue sharing ratio for live broadcasting.
The bank also noted that Bilibili continues to control operating costs and plans to reduce the overall number of employees by the end of this year. It believes that there is room to reduce marketing expenses while maintaining resilience in user growth.
Citigroup: Gives Xiaomi Corporation-W a "Buy" rating, target price of HKD 19.6
Based on the latest closing price of HKD 15.62, this price implies a 25% upside! The company stated that the Redmi K70 series has a strong product lineup and highly competitive prices. The series has incorporated more domestic suppliers, and the main product upgrade direction for Xiaomi next year can be observed from the new products.
The main suppliers include AAC Technologies for the cooling system and BYD Electronics for the metal casing. In addition, as a mass-produced model, the K70 series will support the growth of Xiaomi's smartphone shipments in the first half of next year.