Kingwoo Financial News | The Hang Seng Index closed at 20,397 on Thursday (12th), up 242 points or 1.2%. The total market turnover was 157.7 billion yuan for the day. The national index rose 110 points or 1.5%, reaching 7,360. The technology index increased by 69 points or 1.5%, closing at 4,600. The market anticipates discussions from the Central Economic Work Conference, and as the year comes to an end, many regions in Mainland China have launched a new round of consumption voucher distribution activities, leading to a resurgence in domestic demand stocks. Mengniu (02319) soared by 7.2%, becoming the best-performing blue chip; Bitcoin surpassed the 100,000 USD mark, and Bitcoin ETFs are popular, with Huaxia Bitcoin (03042) up 2.6%;

The Dow Jones closed at 43,914 points on Thursday (12th), down 234 points or 0.53%. The S&P 500 fell by 0.54%, closing at 6,051 points; the Nasdaq decreased by 0.66%, ending at 19,902 points. Among major stocks, Nvidia and Tesla both dropped over 1%, while Apple rebounded by 0.6%. Adobe, a software company, reported earnings outlook worse than expected, with its stock price falling by 13.7%; Broadcom announced its earnings after the market closed on Thursday, with a stock price decline of 1.1%. Uber stated that its San Francisco business growth has not slowed down due to the operation of Waymo's autonomous taxis in the area, resulting in a stock rebound of 0.3%. Warner Bros. Discovery announced a restructuring, dividing its operations into two departments, and its stock price surged by 15.4%. Asian Pacific stock markets showed mixed results this morning (13th), with the Nikkei 225 Index currently at 39,549 points, down 300 points or 0.75%. The South Korean Composite Index is now at 2,473 points, down 8 points or 0.33%. The market anticipates the discussions from the Central Economic Work Conference and the new round of consumption vouchers launched in various areas of Mainland China, contributing to positive performance in domestic demand stocks.

Market Focus: Meituan-W (03690)

Meituan announced that its net profit for the third quarter of 2024 was 12.865 billion yuan (RMB, same below), up 258% year-on-year. On a non-IFRS basis, adjusted profit increased by 1.24 times to 12.829 billion yuan. During the period, revenue reached 93.577 billion yuan, a rise of 22.4%; gross profit was 36.754 billion yuan, an increase of 36.2%; on a non-IFRS basis, adjusted EBITDA grew by 1.35 times to 14.529 billion yuan year-on-year. Performance exceeded expectations. In the third quarter, the instant delivery business continued to grow steadily, with order volume increasing by 14.5% year-on-year to nearly 7.08 billion orders; the in-store hotel and travel business saw order volume rise by over 50% compared to the same period last year, achieving record highs in annual transaction users and active merchants. In the Meituan Flash Purchase segment, both the number of users and transaction frequency recorded double-digit year-on-year growth, and in the future, it will collaborate with more ventures and large retailers through 'Meituan Lightning Warehouse.' Currently, Meituan, as a leading player in the local lifestyle business conglomerate, has a solid barrier in its delivery business, with the external competitive landscape gradually clarifying, indicating that Meituan's core local business profitability is expected to continue to strengthen. Additionally, the group's overseas expansion is in the early stages, suggesting that there remains significant profit release potential in the future. Target price is $200, with a stop-loss price of $149.

(The author is a licensed person of the China Securities Regulatory Commission and does not hold any of the above stocks.)

Author: Dr. Tang Shengxing, Chairman of the Hong Kong Stock Analysts Association.