Analyst Saiyi He of CMB International Securities maintained a Buy rating on Meituan Dianping (MPNGF – Research Report), with a price target of HK$200.20.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Meituan Dianping’s robust financial performance and strategic growth initiatives. The company’s core local commerce segment has shown significant revenue and operating profit growth, surpassing market expectations. This growth is primarily driven by the optimization of user subsidies in their food delivery business, which has led to improved operating efficiency.
Furthermore, Meituan’s efforts to reduce losses from new initiatives, particularly Meituan Select, have been successful, contributing to a narrowing of overall losses. Looking ahead, the company plans to invest in international expansion while maintaining a focus on enhancing operational efficiency across its core and new business segments. These strategic moves are expected to support continued earnings growth, making the stock an attractive investment opportunity.
In another report released yesterday, CLSA also maintained a Buy rating on the stock with a HK$217.00 price target.