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

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China/Asia TMT

Shawn Yang

Equity Bottom-Up

<ul>
<li>We expect Meituan to report 18% YoY topline growth in C4Q22, in line with cons. Our non-IFRS net margin est. is 1.9ppt higher than cons.</li>
<li>In-Store would be impacted by Douyin’s category expansion and deepening penetration in lower-tier cities.</li>
<li>We downgrade Meituan to SELL and cut TP to HK$137 due to pressure from competition for in-store.</li>
</ul>


We expect Meituan to report 18% YoY topline growth in C4Q22, in line with cons. Our non-IFRS net margin est. is 1.9ppt higher than cons.
In-Store would be impacted by Douyin’s category expansion and deepening penetration in lower-tier cities.
We downgrade Meituan to SELL and cut TP to HK$137 due to pressure from competition for in-store.


[Meituan (3690 HK) Downgrade to SELL]: The Rise of Douyin Is Likely to Hurt Meituan