Market Insight | Meituan-W surges over 4% in the afternoon, stock price breaks through the HKD 200 mark, Credit Suisse optimistic about the company's operating profit prospects

Meituan-W rose more than 4% in the afternoon, successfully breaking through the HKD 200 mark. As of the time of publication, it rose by 4.06% to HKD 205.2, with a turnover of HKD 11.631 billion. On the news front, a recent research report from Fuli suggested that the company should issue USD-denominated senior notes. Although details of the notes are not available, the company announced that they will mainly be used for refinancing existing offshore debts and other business purposes. The bank believes that this move is not entirely unexpected for the market, as Meituan's interim report has disclosed the need to re-support USD payments. On the other hand, the bank believes that Meituan has strong execution capabilities, raising its core local business revenue and operating profit prospects, and recognizing the synergies of the company's various business segments, with improvements in the fundamentals of Meituan Optimal; Meituan's performance during the first two days of the Mid-Autumn Festival holiday also showed stability. Meituan is rated as "buy" with a target price of HKD 150