Citi released a research report stating that it maintained the Meituan-W (03690) “buy” rating and raised the target price from HK$192 to HK$203.
According to the report, Meituan's performance for the third quarter of fiscal year 2024 was steady. Total revenue for the period rose 22% year on year, 1.7% higher than market expectations; adjusted net profit rose 124% year on year, 9.8% higher than market expectations. The relevant performance was mainly due to factors such as an increase in core local commercial operating profit that beat expectations.
Looking ahead to the fourth quarter, the central government's latest stimulus measures may support consumer demand. The bank also believes that due to Meituan's strong execution and continuous innovation in products and operating strategies, its growth prospects will remain unchanged while maintaining macro-control and balanced growth.
