[ET Net News Agency, 1 December 2020] UOB Kay Hian lifted its target price for Meituan
(03690) to HK$343 from HK$328 and maintained its "buy" rating.
The research house said Meituan delivered a strong set of 3Q results. Total revenue was
4% ahead of consensus estimates. Adjusted operating profit also beat street estimates.
Management guided that it would be investing more to further expand food delivery
infrastructure as well as fresh groceries shopping moving forward.
UOBKH raised its 2020 and 2021 revenue forecasts by 2%/7% and non-GAAP net profit
forecasts by 39%/-16% respectively to factor in continued growth momentum from three of
its core business amid lower profitability drag as the company continue its new initiative
business ventures. (KL)