In today’s briefing:
- [Meituan (3690 HK, BUY, TP HK$156) TP Change]: Counting on Execution to Navigate the Uncertainties
- Last Week in Event SPACE: Jardine Cycle & Carriage, “Name & Shame”, Asia Cement, Northern Minerals
[Meituan (3690 HK, BUY, TP HK$156) TP Change]: Counting on Execution to Navigate the Uncertainties
- Meituan reported C1Q24 revenue 6.0%/6.2% higher our estimate/consensus, and adjusted net income 19%/29% higher than our estimate/consensus. The stock fell on lower takeout order and in-store revenue guidance for C2Q24;
- The stock has two uncertainties:(1)Strategic moves by Douyin and Eleme,(2)success of overseas expansion. There are no easy answers to these two questions but we believe the corner has been turned
- We maintain the stock as BUY rating and raise TP to HK$156/share to factor in the improvement in profitability.
Last Week in Event SPACE: Jardine Cycle & Carriage, “Name & Shame”, Asia Cement, Northern Minerals
- A new tool highlights which TSE companies have disclosed a policy/consideration; sometimes referred to as the “name and shame” list. In practice, more “name” than “shame”.
- Jardine Cycle & Carriage (JCNC SP) is trading rich to its NAV. And the simple ratio (JCNC/Astra International (ASII IJ)) is the highest level outside the 2008 GFC.
- This is a rubbish Offer for Asia Cement China (743 HK). Given how shareholders voted at last year’s AGM, expect this Scheme to be voted down. Avoid.
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