Market Insight | Meituan-W rises more than 3%, $2 billion buyback plan demonstrates development confidence, Goldman Sachs points to strong profit visibility

Meituan-W rose more than 3%, as of the time of publication, it rose by 3.2% to HKD 116.2, with a turnover of HKD 29.33 billion. On the news front, following the announcement of a $1 billion buyback plan at the end of November last year, Meituan has announced another large buyback plan. The company recently announced that the board of directors has decided, in accordance with the share repurchase authorization passed at the shareholder meeting on June 30, 2023, to occasionally repurchase up to $2 billion worth of Class B ordinary shares in the open market. The company will repurchase shares as appropriate under relevant rules. Fubon believes that the $2 billion stock buyback plan announced by the group is a positive factor, reflecting confidence in the outlook and creating value for shareholders. Goldman Sachs stated that Meituan remains one of the main "buy" recommendations for the second half of the year in the Chinese internet sector, based on strong earnings visibility and the potential market size (TAM) for further online penetration to enhance local services. Meituan is reiterated with a "buy" rating and a target price of HKD 148