Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<ul>
<li>SOUTHBOUND was again a net buyer for HK$18.6bn on strong two-way volumes. The top three net buys of the week were SOE banks. Some may be Central Huijin.</li>
<li>Some of this may be driven by the dividend w/h tax cancellation on H divs and by significant H-share discounts, but high-div CNOOC was the biggest net sell.</li>
<li>No end to the inflows, and HK valuations are not at a place where they would hamper continued flows. Alibaba making HK a Primary will spur more inflows over time.</li>
</ul>


SOUTHBOUND was again a net buyer for HK$18.6bn on strong two-way volumes. The top three net buys of the week were SOE banks. Some may be Central Huijin.
Some of this may be driven by the dividend w/h tax cancellation on H divs and by significant H-share discounts, but high-div CNOOC was the biggest net sell.
No end to the inflows, and HK valuations are not at a place where they would hamper continued flows. Alibaba making HK a Primary will spur more inflows over time.


HK Connect SOUTHBOUND Flows (To 24 May 2024); Strong Bank Buying and Tech Selling Continues

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

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>We notice a pickup in consumer acceptance of instrashopping, as result of COVID-cultivated behavior. We notice similar business model worked outside of China (Coupang) for densely populated urban upper-middle-class customers;</li>
<li>Meituan's launch of membership is a wise step towards strengthening user stickiness and emphasizing transaction soundness over impulsive buying. Meituan's portfolio in food, dining, hotel &amp; travel offer unparalleled value;</li>
<li>We see Meituan's success in Hong Kong honed a replicable business model targeting single and low priced segment. Consolation on a global scale now seems a possibility.</li>
</ul>


We notice a pickup in consumer acceptance of instrashopping, as result of COVID-cultivated behavior. We notice similar business model worked outside of China (Coupang) for densely populated urban upper-middle-class customers;
Meituan's launch of membership is a wise step towards strengthening user stickiness and emphasizing transaction soundness over impulsive buying. Meituan's portfolio in food, dining, hotel &amp; travel offer unparalleled value;
We see Meituan's success in Hong Kong honed a replicable business model targeting single and low priced segment. Consolation on a global scale now seems a possibility.


Meituan (3690 HK): Out of the Woods and Light a Fire

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

<ul>
<li>We upgrade Meituan because we believe its success in Hong Kong might be replicable on a global scale. </li>
<li>The upcoming autonomous driving (ADS) revolution has deep and fundamental implications in permanently cutting Meituan’s logistic cost;</li>
<li>We upgrade the stock from SELL to BUY and raise TP to HK$150/share</li>
</ul>


We upgrade Meituan because we believe its success in Hong Kong might be replicable on a global scale. 
The upcoming autonomous driving (ADS) revolution has deep and fundamental implications in permanently cutting Meituan’s logistic cost;
We upgrade the stock from SELL to BUY and raise TP to HK$150/share


[Meituan (3690 HK,BUY,TP HK$150) Rating Change]: A Turning Point Might Have Arrived on Two Catalysts

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>Total revenue grew by 22.6% YoY in 4Q23, three percentage points higher than we expected.</li>
<li>MT’s operating profit broke even for the fiscal year 2023.</li>
<li>We conclude an upside of 113% and a price target of HK$188. Buy.</li>
</ul>


Total revenue grew by 22.6% YoY in 4Q23, three percentage points higher than we expected.
MT’s operating profit broke even for the fiscal year 2023.
We conclude an upside of 113% and a price target of HK$188. Buy.


MT / Meituan (3690 HK): 2023 - Broke Even for First Year

Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>Meituan has navigated through its most challenging period since IPO as competition moderates and reorg comes close to completion. </li>
<li>1Q results should kick off an upward earnings cycle through to the end of 2024 when the company’s efforts to revamp loss-making new initiative businesses gather pace. </li>
<li>That said, lack of clear topline driver remains the key reason for our cautious view about the sustainability of re-rating. Maintain neutral.</li>
</ul>


Meituan has navigated through its most challenging period since IPO as competition moderates and reorg comes close to completion. 
1Q results should kick off an upward earnings cycle through to the end of 2024 when the company’s efforts to revamp loss-making new initiative businesses gather pace. 
That said, lack of clear topline driver remains the key reason for our cautious view about the sustainability of re-rating. Maintain neutral.


Meituan (3690 HK): Lack of Clear Topline Driver Remains a Concern

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)

HK Connect SOUTHBOUND Flows (To 24 May 2024); Strong Bank Buying and Tech Selling Continues

SOUTHBOUND flows continue to be strong. This week saw nearly HK$8bn bought on Banks and banks were top inflows. Some of this may be National Team...

Travis Lundy

Meituan (3690 HK): Out of the Woods and Light a Fire

Meituan plans to launch a comprehensive membership program as it extends instrashopping from grocery to daily goods, positive for its profit...

Blue Lotus Research Institute

[Meituan (3690 HK,BUY,TP HK$150) Rating Change]: A Turning Point Might Have Arrived on Two Catalysts

We upgrade Meituan because we believe its success in Hong Kong might be replicable on a global scale. Evidence has also emerged that domestic...

Blue Lotus Research Institute

MT / Meituan (3690 HK): 2023 - Broke Even for First Year

In 4Q23, the revenue growth rate was three percentage points higher than we expected. MT’s operating profit broke even for the first year. We...

Ming Lu

Meituan (3690 HK): Lack of Clear Topline Driver Remains a Concern

While we expect 1Q24 to kick off an upward earnings cycle for Meituan, lack of clear topline driver remains a concern given its valuation premium...

Eric Chen

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

HK Connect SOUTHBOUND Flows (To 24 May 2024); Strong Bank Buying and Tech Selling Continues

SOUTHBOUND flows continue to be strong. This week saw nearly HK$8bn bought on Banks and banks were top inflows. Some of this may be National Team...

Travis Lundy

Meituan (3690 HK): Out of the Woods and Light a Fire

​Meituan plans to launch a comprehensive membership program as it extends instrashopping from grocery to daily goods, positive for its profit...

Blue Lotus Research Institute

[Meituan (3690 HK,BUY,TP HK$150) Rating Change]: A Turning Point Might Have Arrived on Two Catalysts

We upgrade Meituan because we believe its success in Hong Kong might be replicable on a global scale. Evidence has also emerged that domestic...

Blue Lotus Research Institute

MT / Meituan (3690 HK): 2023 - Broke Even for First Year

In 4Q23, the revenue growth rate was three percentage points higher than we expected. MT’s operating profit broke even for the first year. We...

Ming Lu

Meituan (3690 HK): Lack of Clear Topline Driver Remains a Concern

​While we expect 1Q24 to kick off an upward earnings cycle for Meituan, lack of clear topline driver remains a concern given its valuation premium...

Eric Chen

Meituan plans to launch a comprehensive membership program as it extends instrashopping from grocery to daily goods, positive for its profit...

While we expect 1Q24 to kick off an upward earnings cycle for Meituan, lack of clear topline driver remains a concern given its valuation premium...