Understanding the Market | MEITUAN-W rose nearly 4% as the company's third-quarter report is about to be disclosed, with institutions expecting its revenue to increase by 20% year-on-year

Zhitong
2024.11.27 06:16
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MEITUAN-W rose nearly 4%, as of the time of writing, up 3.83%, reported at HKD 170.6, with a transaction volume of HKD 3.255 billion. In terms of news, Meituan will hold a board meeting on November 29 (this Friday) to consider and approve the unaudited financial performance for the third quarter of 2024. Nomura released a research report stating that Meituan's third-quarter revenue is expected to increase by 20% year-on-year, in line with market expectations; non-GAAP net profit is expected to increase by 111% year-on-year, 3% higher than market expectations, mainly due to improved profitability in core businesses. The core local business operating profit is expected to increase by 37% year-on-year. The firm raised Meituan's target price from HKD 151 to HKD 224, reiterating a "Buy" rating. Citigroup believes that Meituan's third-quarter performance is mainly driven by demand from stores, tourism, and flash purchases, benefiting from disciplined spending and operational leverage, with unit economics and profits expected to be better than anticipated. According to the firm's estimates, Meituan's adjusted net profit for the third quarter is RMB 13.8 billion; total revenue is expected to increase by 20% year-on-year to RMB 91.9 billion. For the fourth quarter, adjusted net profit is expected to be RMB 11.25 billion; total revenue is expected to increase by 18.3% year-on-year to RMB 87.2 billion

According to Zhitong Finance APP, Meituan-W (03690) rose nearly 4%, and as of the time of writing, it was up 3.83%, trading at HKD 170.6, with a transaction volume of HKD 3.255 billion.

In terms of news, Meituan will hold a board meeting on November 29 (this Friday) to consider and approve the unaudited financial performance for the third quarter of 2024. Nomura released a research report stating that Meituan's third-quarter revenue is expected to increase by 20% year-on-year, in line with market expectations; non-GAAP net profit is expected to increase by 111% year-on-year, which is 3% higher than market expectations, mainly due to improved profitability in its core business. The operating profit of its core local business is expected to increase by 37% year-on-year. The firm raised Meituan's target price from HKD 151 to HKD 224, reiterating a "Buy" rating.

Citigroup believes that Meituan's third-quarter performance is mainly driven by demand from stores, tourism, and flash purchases, and also benefits from disciplined spending and operational leverage, expecting unit economics and profits to be better than expected. According to the firm's estimates, Meituan's adjusted net profit for the third quarter is RMB 13.8 billion; total revenue is expected to increase by 20% year-on-year to RMB 91.9 billion. For the fourth quarter, adjusted net profit is expected to be RMB 11.25 billion; total revenue is expected to increase by 18.3% year-on-year to RMB 87.2 billion

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