In today’s briefing:
- Meituan (3690 HK): Turning Cautiously Positive
- Monthly Chinese Tourism Tracker | China’s 2023 Recovery in Ten Charts | (January 2024)
- Latest Impact of the US Biosecure Act on WuXi AppTec/WuXi Bio/WuXi XDC – China CXO Really Game Over?
Meituan (3690 HK): Turning Cautiously Positive
- Share price of Meituan has fallen by 25% since we flagged the name as high-conviction sell for 2024 last December, due in large to its weakening fundamental and earnings cut.
- We believe its competitive positioning in food delivery remains rock solid and estimates Meituan will likely command over 2/3 market share in in-store business, at the expense of margin.
- The company trades at 12x/8.6x 2024/25 consensus earnings. Current valuation already priced in rather bearish outlook amidst macro concerns and intensified competition in our view. We see value emerging.
Monthly Chinese Tourism Tracker | China’s 2023 Recovery in Ten Charts | (January 2024)
- By one metric, outbound tourism in December improved to 89% of 2019 levels
- Meanwhile, domestic activity in December remained close to pre-Covid levels
- In this month’s edition we track the tourism recovery in ten illustrative charts
Latest Impact of the US Biosecure Act on WuXi AppTec/WuXi Bio/WuXi XDC – China CXO Really Game Over?
- Based on the latest updates, it’s still uncertain to see a positive turnaround.There’ve been no effective ways to evade.Debate about restricting Chinese biopharmaceuticals has never gone away in US politics.
- Nobody can say with 100% certainty whether the Bill will be passed/how much impact it will have. Until the dust settles, any rebound in share prices is difficult to sustain.
- The market is preparing for the worst-case scenario, but if the final Bill is less stringent than expected, shares of WuXi AppTec and its subsidiaries would rebound.Here’re different bottom-fishing strategies.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
