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<Research>China Renaissance Lowers MEITUAN-W TP to HKD195, Reiterates Buy Rating
Recommend 16 Positive 21 Negative 6 |
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China Renaissance's research report wrote that MEITUAN-W (03690.HK) faced intensified industry competition in 2Q25. As more peers enter the market, Meituan's commitment to increased investment to maintain competitiveness may lead to short-term fluctuations in revenue and unit profit performance. The broker lowered MEITUAN-W’s target price from HKD240 to HKD195, reiterating a Buy rating. Risks included prolonged macroeconomic weakness, stricter regulations, and slower-than-expected narrowing losses of new initiatives. Meituan's losses of new initiatives in 1Q25 was RMB2.3 billion, 3% better than expected, said the broker. Among these, Meituan Select's loss was estimated at RMB1.7 billion, remaining flat MoM, with the remaining losses majorly related to overseas expansion. Looking ahead to 2025, the broker expected Meituan Select's losses to remain flat, but the scale of overseas investment will further expand, predicting an annual operating loss of RMB2.6 billion for this segment. AASTOCKS Financial News Website: www.aastocks.com |
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