[ET Net News Agency, 25 January 2021] Nomura lifted its target price for Meituan
(03690) to HK$452 from HK$342 and maintained its "buy" rating.
The research house anticipated Meituan's total revenue to grow 31% to CNY37bn in 4Q
2020, in line with consensus estimates. Non-GAAP operating margin is likely to come in at
-7.1%, down 12.5pp YoY/11.5pp QoQ, due to higher losses from new initiatives, in
particular, Meituan Select, its community grocery group-buy (CGG) business, as Meituan
has stepped up investment in this new business.
Nomura expects a non-GAAP loss per share of CNY0.43, versus the Street's EPS of CNY0.19.
It anticipated Meituan Select to turn profitable by 2024, with GTV (gross transaction
value) likely reaching CNY347bn. (KL)