Lyon expects that with the expansion of Meituan's rapid warehouse and the cross-selling of the "God Member" membership plan, instant retail and in-store business will maintain strong growth.
According to Zhihui Finance APP, Citibank has released a Research Report stating that it maintains a " outperform the market" rating for MEITUAN-W (03690) with a Target Price of 217 Hong Kong dollars. The bank predicts that MEITUAN's adjusted EBIT for its core local business in the last quarter will grow 45% year-on-year to 11.6 billion yuan, and that the profit margins across all business segments will improve. It believes that the core local business Sector remains robust, with a growth rate of 17% expected this year and stable profit margins.
Citibank pointed out that MEITUAN is about to announce its performance, and currently predicts that revenue in the fourth quarter of 2024 will increase by 19% year-on-year to 87.9 billion yuan, with adjusted EBIT expected to grow by 196% to 9.4 billion yuan. Citibank anticipates that with the expansion of MEITUAN's flash warehouse and the cross-selling driven by the "Shen Membership" program, instant retail and in-store businesses are expected to maintain strong growth.
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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