TOP MOVER ALERT: Meituan shares up 5% in the last two days ahead of Friday's earnings

– Meituan shares are up 3.9% to HKD 170.70 as of 205PM today, taking its two-day move to +5.2%. Over the same period, the benchmark HSI and HSTECH indices are up up 0.6% by comparison

– The outperformance of Meituan shares in the last two days comes ahead of its third quarter earnings due for annoucement after market this Friday

– According to Bloomberg Intelligence, Meituan's core local commerce operating profit probably exceeded consensus estimates for a ninth straight quarter on growth at its food delivery and on-demand (Instashopping) retailing businesses.

– A wider range of low-priced meals from July-September may have boosted order frequency from existing users while wooing new ones, delivering improved scale economies at its food delivery unit. Meituan's growing Instashopping unit, supported by 30,000 warehouses in October vs. about 8,000 in May, likely delivered lower unit costs of sales and delivery, with expanded merchandise offerings and deeper customer reach in mainland China.

– Meituan's profits from in-store, hotel and travel businesses probably also rose year-over-year as demand for group purchases and travel deals stayed strong this summer. (Bloomberg Intelligence on 27/11/24