Nomura expects that Meituan's revenue in the last quarter will grow by 20% year-on-year, and the non-International Financial Reporting Standards (Non-IFRS) operating profit will increase by 1.97 times year-on-year, both in line with the latest market expectations.
According to the Zhito Finance APP, Nomura released a research report stating that it maintains a "Buy" rating for MEITUAN-W (03690), with a Target Price of 212 Hong Kong dollars. Meituan's performance in the fourth quarter of last year is expected to meet or slightly exceed the company's guidance and market expectations, similar to previous quarters. The bank anticipates that Meituan's revenue last quarter will increase by 20% year-on-year, and its non-International Financial Reporting Standards (Non-IFRS) operating profit will rise 1.97 times year-on-year, both in line with the latest market expectations.
Looking at the Business segments, Meituan's takeout business revenue and unit economics are expected to grow by 15% and 32% year-on-year, reaching 43.7 billion yuan and 1.17 yuan per order respectively. Additionally, the in-store business revenue is expected to grow by 25% year-on-year, with an operating profit margin improvement of 3.6 percentage points to 32.3%. As for Meituan's overseas takeout brand Keeta, it has expanded to seven cities in Saudi Arabia since September last year.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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