Jefferies Maintains 'Buy' Rating on Meituan Amid Improved Business Fundamentals

According to Jin10, Jefferies released a research report indicating that Meituan's total revenue for the fourth quarter of last year increased by 4.1% year-on-year to 92.1 billion RMB, aligning with both the firm's and market expectations. The core local business revenue saw a 1% year-on-year decline to 64.8 billion RMB, slightly below the market's expectation of remaining flat, while Jefferies anticipated a 1.3% drop. The core local business operating loss reached 10 billion RMB. New business revenue grew by 18.9% year-on-year to 27.3 billion RMB, surpassing expectations, with an operating loss of 4.6 billion RMB. The adjusted net loss amounted to 15 billion RMB, which was below market expectations but in line with Jefferies' forecast. Jefferies noted that Meituan's core local business fundamentals are improving, and new business ventures are on track, maintaining a 'buy' rating with a target price of 130 HKD.