Meituan rose nearly 3% in the afternoon, with a cumulative post-performance increase of over 23%. As of the time of writing, it rose by 2.93% to HKD 126.6, with a turnover of 1.899 billion HKD.
$MEITUAN-W (03690.HK)$Rose nearly 3% in the afternoon, with a cumulative post-performance increase of over 23%. As of the time of writing, it rose by 2.93% to HKD 126.6, with a turnover of 1.899 billion HKD.
On the news front, rating agency Standard & Poor's has raised Meituan's long-term issuer credit rating to "BBB+" and correspondingly raised the issue rating of the company's unsecured notes. S&P stated that despite the weak macroeconomic conditions, the strong momentum of Meituan's core local commerce business is expected to be sustained. Although the average consumption amount per order has decreased, the transaction volume is still growing at a healthy pace. S&P pointed out that Meituan has executed its plan to reduce losses faster than expected and has reduced user rewards for on-demand delivery faster than the bank expected.
Fitch Ratings recently also raised Meituan's long-term issuer rating to "BBB" with a positive outlook. Fitch stated that this rating upgrade reflects the significant improvement in Meituan's profitability and strong free cash flow (FCF), thanks to its successful strategic execution and the easing of competition in its in-store business. Fitch expects that Meituan's platform scalability, continuous improvement in the penetration rate of its core local commerce business, and the strategic shift from subsidy-driven investment to return-driven investment will support robust EBITDA growth and FCF generation in the medium to short term.
Editor/ping