In this briefing:
- Meituan Dianping (美团点评): Thoughts Before Lock-Up Expiry
- NIO’s (蔚来) Guidance Makes Selling upon Lock-Expiry More Compelling
1. Meituan Dianping (美团点评): Thoughts Before Lock-Up Expiry
Meituan Dianping, the largest O2O platform in China, was listed on September 20th last year and lock-up expiry will be on March 20th. The stock has returned -13% since listing.
- As it heads into lock-up expiry on March 20th, we will examine Meituan Dianping shareholder structure and potential shares up for sale.
- Meituan was included by MSCI recently and will be eligible for the Hong Kong Connect soon thanks to rule amendment.
- The company delivered a decent topline growth in 3Q2018 but its profit fell short of expectation. We highlight potentials from the food supply chain solution. We also discuss implication from MoBike acquisition.
- We review our SOTP valuation of Meituan and believe there is an upside.
Our previous coverage on Meituan Dianping
- Meituan Dianping IPO Preview: The China O2O Powerhouse
- Meituan Dianping IPO: Understand the Moat From 3 Company Milestones
- Meituan Dianping (美团点评) IPO: Thoughts on Valuation – The Market Structure and the Variables (Part 3)
- Meituan Dianping (美团点评) IPO: New Data, Mobike, Liquidity and Refined Valuation (Part 4)
- Meituan Dianping (美团点评) Post-IPO Lunch-Bite: Near Term Upside and The Liquidity Angle
2. NIO’s (蔚来) Guidance Makes Selling upon Lock-Expiry More Compelling
NIO Inc (NIO US) fell 17% in its after-hour trading session post announcement of its Q4 results. The company turned a gross profit in Q4 while the number of cars delivered in the full year 2018 was 11,348 has beaten their own 10,000 cars target. The company is currently trading 62% above its IPO price.
However, the worrying part lies in its guidance which could mean that pre-IPO investors have more compelling reasons to lock-in some profits upon lock-up expiry.
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