MEITUAN Plummets 4%+ to 52-Wk Low Pre-results

The stock suffered a fall for the 3rd consecutive trading day. After opening 0.6% higher at $109.3 this morning, it turned down and dropped to $103.6 in the afternoon, hitting a 52-week low. It now trades at $103.9, down 4.3%, with 22.5932 million shares traded, involving $2.389 billion.

While MEITUAN's takeaway order volume may be affected by macroeconomic and subsidy measures, the results are supported by seasonal travel during the summer holidays, cost optimisation due to an abundant supply of riders, growth in the in-store business, and a related operating margin that may reach the upper end of the market's forecast of 30-35%.

As summarised by our reporters, 8 brokers have forecasted MEITUAN's non-IFRS adjusted profit to be in the range of RMB4.823 billion to RMB5.695 billion, representing an increase of 36.7% to 61.5% YoY compared to RMB3.527 billion in 3Q22. The median is RMB4.929 billion, representing an increase of 40% YoY.