[ET Net News Agency, 9 October 2019] HSBC Global Research lifted its target price for
Meituan Dianping (03690) to HK$111 from HK$95 and maintained its "buy" rating.
The research house expects a more positive 2H, and higher adjusted EBITDA and narrower
GAAP losses on a consolidated level, while food delivery could be profitable or close to
break-even for another quarter on efficiency gains in rider costs per order given better
unit economics (reduced to RMB7.2 in 2019 from RMB7.5 in 2018), contrary to market
expectations that it might turn back to losses.
Yet, HSBC believes Meituan prioritizes longer-term growth over short-term profitability;
hence, it thinks the company might reinvest profits to drive market share gains instead.
Thus, HSBC increased its adjusted EBITDA estimates by 39%/22% for 2019/20. (KL)
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03690 MEITUAN-W
Nominal 
113.600 +5.000 (+4.604%) Others
09/10/2019 15:15
{I-bank focus}HSBC ups Meituan Dianping (03690) to HK$111
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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