[ET Net News Agency, 1 December 2020] BOCOM International Research tweaked its target
price for Meituan (03690) to HK$330 from HK$325.3 and maintained its "buy" rating.
The research house said Meituan's 3Q revenue beat consensus by 4%, while all 3 segments
resumed positive growth. BOCOM expects revenue at RMB37bn in 4Q, up 31%, and adjusted net
profit to be RMB1.16bn, with a net profit margin of 3.1%, down YoY/QoQ on grocery business
spending and marketing budget at year-end.
BOCOM lifted its 2020/21 profit estimates for food delivery and revised EPS estimates.
It thinks Meituan could become a top player in the online grocery industry given its
strong logistics, BD, and tech capability. (KL)