In today’s briefing:
- Meituan (3690 HK): Turning Cautiously Positive
- Monthly Chinese Tourism Tracker | China’s 2023 Recovery in Ten Charts | (January 2024)
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
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