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, BUY, TP HK$165) TP Change]: Competition with Douyin Continues, Cut TP to HK$165

[Meituan (3690 HK, BUY, TP HK$165) Earnings Review]: Counterstrike Remains Effective… Maintain BUY

Meituan (3690 HK): Strong Bottom Line Growth Will Prove to Be Short-Lived

Meituan's Strategies to Compete with Douyin: A Review of the Latest Three

Meituan’s Recent Expansion in Hong Kong: A Review

[Meituan (3690 HK) Rating Change]: Meituan’s Counterstrike Is Effective, Upgrade to BUY

China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>Meituan reported 1Q23’s rev./non-IFRS net income 2.5%/126% vs. our est., the strong margin beat is due to efficiency improvements in all business lines;</li>
<li>To compete with Douyin’s in-store business, Meituan will spend more in 2Q23, however FD and insta-shopping continue to have margin upside. </li>
<li>Our BUY thesis remains unchanged, as we believe investors overestimate Douyin's impact, while underestimating Meituan's ability to improve margins. </li>
</ul>


Meituan reported 1Q23’s rev./non-IFRS net income 2.5%/126% vs. our est., the strong margin beat is due to efficiency improvements in all business lines;
To compete with Douyin’s in-store business, Meituan will spend more in 2Q23, however FD and insta-shopping continue to have margin upside. 
Our BUY thesis remains unchanged, as we believe investors overestimate Douyin's impact, while underestimating Meituan's ability to improve margins. 


Meituan (3690 HK, BUY, TP US$170) Target Price Change: Consolidating Market Share… Maintain BUY