China/Asia TMT

Shawn Yang

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

Equity Bottom-Up

<ul>
<li>Meituan reported 1Q23’s rev./non-IFRS net income 2.5%/126% vs. our est., the strong margin beat is due to efficiency improvements in all business lines;</li>
<li>To compete with Douyin’s in-store business, Meituan will spend more in 2Q23, however FD and insta-shopping continue to have margin upside. </li>
<li>Our BUY thesis remains unchanged, as we believe investors overestimate Douyin's impact, while underestimating Meituan's ability to improve margins. </li>
</ul>


Meituan reported 1Q23’s rev./non-IFRS net income 2.5%/126% vs. our est., the strong margin beat is due to efficiency improvements in all business lines;
To compete with Douyin’s in-store business, Meituan will spend more in 2Q23, however FD and insta-shopping continue to have margin upside. 
Our BUY thesis remains unchanged, as we believe investors overestimate Douyin's impact, while underestimating Meituan's ability to improve margins. 


Meituan (3690 HK, BUY, TP US$170) Target Price Change: Consolidating Market Share… Maintain BUY

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> ’s 1Q2023 earnings beat consensus estimates and the key highlight was the company turning into adjusted operating profits after two years.</li>
<li>Revenue from Core local commerce continued to see strong growth in earnings though we expected growth rates to decline with pandemic conditions easing off.</li>
<li>Meituan has launched its food delivery app “KeeTa” in Hong Kong which is dominated by Foodpanda and Deliveroo.</li>
</ul>



Meituan (3690 HK) ’s 1Q2023 earnings beat consensus estimates and the key highlight was the company turning into adjusted operating profits after two years.
Revenue from Core local commerce continued to see strong growth in earnings though we expected growth rates to decline with pandemic conditions easing off.
Meituan has launched its food delivery app “KeeTa” in Hong Kong which is dominated by Foodpanda and Deliveroo.


Meituan: Strong 1Q with Operating Profits; No Disclosure on User Numbers and Delivery Costs

Overseas Chinese Equities, Aequitas Research

Ming Lu

Overseas Chinese Equities

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>In 1Q23, total revenues grew by 27% YoY with all business lines up by more than 10% YoY.</li>
<li>The real operating profits turned positive after nine quarters’ losses.</li>
<li>We believe the stock has an upside of 35% for yearend 2023. Buy.</li>
</ul>


In 1Q23, total revenues grew by 27% YoY with all business lines up by more than 10% YoY.
The real operating profits turned positive after nine quarters’ losses.
We believe the stock has an upside of 35% for yearend 2023. Buy.


Meituan (3690 HK): 1Q23, Real Operating Profit Turned Positive After Nine Quarters

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Equity Capital Markets

JD Industrial Technology  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jd-industrials" target="_blank" data-smartkarma-citation="entities:36875:1" rel="noopener">JD Industrials</a> is looking to raise about US$1bn in its upcoming HK IPO. </li>
<li>JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.</li>
<li>We undertook a peer comparison in our previous note, in this note we talk about some additional useful information that we found interesting from peer filings.</li>
</ul>



JD Industrials is looking to raise about US$1bn in its upcoming HK IPO. 
JDI is a leading industrial supply chain technology and service provider in China in terms of GMV in each year during the Track Record Period, according to CIC.
We undertook a peer comparison in our previous note, in this note we talk about some additional useful information that we found interesting from peer filings.


JD Industrials Pre-IPO - Peer Comparison - Some Interesting Nuggets from Peer Filings

<ul>
<li>On May 22nd, Meituan launched its food delivery platform called KeeTa in Hong Kong SAR.</li>
<li>KeeTa's expansion stratgies include Collaboration with branded chain merchants,lower ASP, subsidy campaign, and launching "On-time Guarantee".</li>
<li>Sofar the initial results after launch seems to be in-line with expecation, while  there will still be a lot of challenges, like small market size and stabilized competition landscape.  </li>
</ul>


On May 22nd, Meituan launched its food delivery platform called KeeTa in Hong Kong SAR.
KeeTa's expansion stratgies include Collaboration with branded chain merchants,lower ASP, subsidy campaign, and launching "On-time Guarantee".
Sofar the initial results after launch seems to be in-line with expecation, while  there will still be a lot of challenges, like small market size and stabilized competition landscape.  


Meituan’s Recent Expansion in Hong Kong: A Review

China

Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

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Meituan (3690 HK)

Meituan: Strong 1Q with Operating Profits; No Disclosure on User Numbers and Delivery Costs

Meituan reported adj. OP and core local commerce biz seeing strong growth. There is no disclosure on user/merchant numbers and delivery costs which...

Shifara Samsudeen, ACMA, CGMA

Meituan (3690 HK): 1Q23, Real Operating Profit Turned Positive After Nine Quarters

In 1Q23, Meituan (MT)’s revenues still strongly grew by 27% YoY with all business lines up by more than 10% YoY. The real operating profits turned...

Ming Lu

JD Industrials Pre-IPO - Peer Comparison - Some Interesting Nuggets from Peer Filings

JD Industrials is looking to raise about US$1bn in its upcoming HK IPO. In this note we talk about some additional useful information that we...

Sumeet Singh

Meituan’s Recent Expansion in Hong Kong: A Review

On May 22nd, Meituan launched its food delivery platform called KeeTa in Hong Kong SAR. KeeTa's expansion stratgies include lower ASP, subsidy...

Blue Lotus Research Institute

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Meituan (3690 HK, BUY, TP US$170) Target Price Change: Consolidating Market Share… Maintain BUY

Our BUY thesis remains unchanged, as we believe investors overestimate Douyin's impact, while underestimating Meituan's ability to improve margins....

Blue Lotus Research Institute

Meituan: Strong 1Q with Operating Profits; No Disclosure on User Numbers and Delivery Costs

Meituan reported adj. OP and core local commerce biz seeing strong growth. There is no disclosure on user/merchant numbers and delivery costs which...

Shifara Samsudeen, ACMA, CGMA

Meituan (3690 HK): 1Q23, Real Operating Profit Turned Positive After Nine Quarters

In 1Q23, Meituan (MT)’s revenues still strongly grew by 27% YoY with all business lines up by more than 10% YoY. The real operating profits turned...

Ming Lu

JD Industrials Pre-IPO - Peer Comparison - Some Interesting Nuggets from Peer Filings

JD Industrials is looking to raise about US$1bn in its upcoming HK IPO. In this note we talk about some additional useful information that we...

Sumeet Singh

Meituan’s Recent Expansion in Hong Kong: A Review

On May 22nd, Meituan launched its food delivery platform called KeeTa in Hong Kong SAR. KeeTa's expansion stratgies include lower ASP, subsidy...

Blue Lotus Research Institute