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

Meituan (3690 HK): Online Drug Sales Is the First Sweet Spot of O2O Vs. E-Commerce

[Meituan (3690 HK, BUY, TP HK$165) TP Change]: C3Q24 Review: Buy or Leave?

Despite Many Years and Efforts, Insurance Covered Online Pharmacies Still Only 0.8-3.6% of Total

Blue Lotus Non US Internet research, Blue Lotus Research Institute

Ying Pan

Blue Lotus Non US Internet research

Equity Bottom-Up

<ul>
<li>Meituan reported C4Q24 revenue in-line, and non-IFRS OP miss 7.9%/1.9% vs. our estimate/consensus, due to extra Opex on purchasing GPU, while core biz profitability improved.</li>
<li>We see membership initiatives and enhancing O2O penetration as the main catalyst in 2025, and the downside risk on competition, social security, and overseas investment are limited.</li>
<li>We rise TP to HK$196 to factor in the promising OP growth trajectory and keep as TOP BUY in China e-commerce.</li>
</ul>


Meituan reported C4Q24 revenue in-line, and non-IFRS OP miss 7.9%/1.9% vs. our estimate/consensus, due to extra Opex on purchasing GPU, while core biz profitability improved.
We see membership initiatives and enhancing O2O penetration as the main catalyst in 2025, and the downside risk on competition, social security, and overseas investment are limited.
We rise TP to HK$196 to factor in the promising OP growth trajectory and keep as TOP BUY in China e-commerce.


[Meituan (3690 HK, BUY, TP HK$196) TP Change]: Sustained Operating Profit Growth in 2025…TOP BUY