Daiwa Research raised its target price for Meituan (03690) to HK$370 from HK$350 and maintained its "buy" rating.
The research house said catalysts for 2021 include (1) market-share gain in online groceries, (2) strong contribution from advertising revenue reflected in higher take-rate in food delivery and in-store businesses, (3) faster domestic online travel demand, and market-share gain in lower-tier cities' hotels, (4) improvement in efficiency gain in food delivery to lead to higher operating margin, and (5) regulatory risk on its food delivery and online groceries businesses to recede earlier than expected.
In 2021, Daiwa believes Meituan's fundamentals will remain solid, driven by a few secular trends. It sees further room for Meituan to increase its order volume in various scenarios (eg, late-night snacks, afternoon tea).
etnet榮獲HKEX Awards 2023 「最佳表現證券數據供應商」大獎► 了解詳情
