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

[Blue Lotus Daily - TMT Update]:NTES/700 HK/Temu/PDD/Shein/AMZN/3690 HK/BABA/JD

Meituan (3690 HK): Turning Cautiously Positive

[Blue Lotus Daily]:LKNCY/XPEV/LI/NIO/1211 HK/300750 CH

[Meituan (3690 HK, BUY, TP HK$118) TP Change]: Deeply Cultivate Domestic While Wait for Overseas

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

Equity Bottom-Up

<ul>
<li>Local news reported an unnamed expert suggesting ByteDance might be buying Eleme for US$7bn, leading to share of Meituan to fall;</li>
<li>While we believe (1) buying a food delivery business to complement Douyin’s in-store business makes some sense and...</li>
<li>(2) ByteDance has been aggressive in pushing the boundary of its businesses, an entry into domestic food delivery is a daunting challenge that yields very little benefits for ByteDance;</li>
</ul>


Local news reported an unnamed expert suggesting ByteDance might be buying Eleme for US$7bn, leading to share of Meituan to fall;
While we believe (1) buying a food delivery business to complement Douyin’s in-store business makes some sense and...
(2) ByteDance has been aggressive in pushing the boundary of its businesses, an entry into domestic food delivery is a daunting challenge that yields very little benefits for ByteDance;


[Meituan (3690 HK, BUY, TP HK$118) Company Update]: Why ByteDance’s Purchase of Eleme Is a Bad Idea?