Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

A chartered management accountant with more than 10 years of rich experience in investment research and financial analysis. Worked as an equity analyst for one of the world's largest asset managers with USD2.5trn in AUM covering numerous sectors including chemicals, retail, tech, autos, telco, real-estate and banks, globally. Experienced in fundamental equity research, industry research, commodity studies, forensic accounting, and due diligence reviews.

Equity Analyst

Meituan Fined RMB3.44bn; Expect Short-Term Gains with Positive Shift in Sentiment

Baycurrent Consulting: Strong Fundamentals; Up Almost 200% and Further Upside Likely

Shift 4Q: Growth Story Is Getting Stronger

JD Health: Strong Earnings but Regulatory Environment Remains a Concern

Meituan: Is the US$1bn Fine the End of the Regulatory Probe on Meituan?

Tencent: Weakening Online Games; Cautions Investors that More Regulatory Changes Are to Come

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> reported 2Q2021 results on Monday which saw revenues increasing 77.0% YoY to RMB23.1bn (vs consensus revenues of RMB22bn) while the company reported an operating loss of RMB3.25bn (7.4% of total revenues) as opposed to an operating profit of RMB2.18bn (OPM of 8.8%) in the same quarter a year ago.</p><p>Strong growth in revenue across all three segments contributed to the top line growth, however, New Initiatives &amp; Others continue to weigh on Meituan’s margins where it generated an operating loss of RMB9.2bn (76.8% of revenues) in 2Q2021. Lower revenue base during 2Q2020 due to the Covid-19 outbreak also partially supported growth in revenue during the quarter. The other two segments reported improvements in OPM which helped partially offset operating losses from new initiatives &amp; others.</p>

Meituan (3690 HK) reported 2Q2021 results on Monday which saw revenues increasing 77.0% YoY to RMB23.1bn (vs consensus revenues of RMB22bn) while the company reported an operating loss of RMB3.25bn (7.4% of total revenues) as opposed to an operating profit of RMB2.18bn (OPM of 8.8%) in the same quarter a year ago.Strong growth in revenue across all three segments contributed to the top line growth, however, New Initiatives &amp; Others continue to weigh on Meituan’s margins where it generated an operating loss of RMB9.2bn (76.8% of revenues) in 2Q2021. Lower revenue base during 2Q2020 due to the Covid-19 outbreak also partially supported growth in revenue during the quarter. The other two segments reported improvements in OPM which helped partially offset operating losses from new initiatives &amp; others.

Meituan: New Initiatives Continue to Heavily Weigh on Margins