In today’s briefing:
- Meituan: Strong 1Q with Operating Profits; No Disclosure on User Numbers and Delivery Costs
- Jiangxi Rimag IPO Preview: Empowering The Future of Medical Imaging Services in China
- NetEase (NTES US, BUY, TP US$106) Earnings Review: Justice Mobile Is the Next Catalyst
- Weekly Wrap – 26 May 2023
- Meituan (3690 HK, BUY, TP US$170) Target Price Change: Consolidating Market Share… Maintain BUY
- Weibo (WB US, BUY, TP US$26.9) Earnings Review: Maintain BUY for Margin Improvement
Meituan: Strong 1Q with Operating Profits; No Disclosure on User Numbers and Delivery Costs
- Meituan (3690 HK) ’s 1Q2023 earnings beat consensus estimates and the key highlight was the company turning into adjusted operating profits after two years.
- Revenue from Core local commerce continued to see strong growth in earnings though we expected growth rates to decline with pandemic conditions easing off.
- Meituan has launched its food delivery app “KeeTa” in Hong Kong which is dominated by Foodpanda and Deliveroo.
Jiangxi Rimag IPO Preview: Empowering The Future of Medical Imaging Services in China
- Jiangxi Rimag Group (JIR HK), a China-based medical imaging center operator and provider of Rimag cloud services, filed for a Hong Kong IPO.
- Jiangxi Rimag Group (JIR HK) was backed by Goldman Sachs, leading VC firms in Asia, Baidu Inc., JD Health, and American healthcare investment firm OrbiMed.
- China’s medical imaging industry is experiencing a remarkable transformation, driven by rapid technological advancements, evolving healthcare needs, and supportive government policies.
NetEase (NTES US, BUY, TP US$106) Earnings Review: Justice Mobile Is the Next Catalyst
- NetEase reported in-line revenue for 1Q23, while non-GAAP net income exceeded our estimate by 22%.
- <Justice Mobile> is set to launch by the end of June. We anticipate that investors may need to wait for some time after June for NetEase’s next potential hit title.
- Maintain a BUY with TP unchanged, implying 18X PE in 2023.
Weekly Wrap – 26 May 2023
Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.
In this Insight:
Meituan (3690 HK, BUY, TP US$170) Target Price Change: Consolidating Market Share… Maintain BUY
- Meituan reported 1Q23’s rev./non-IFRS net income 2.5%/126% vs. our est., the strong margin beat is due to efficiency improvements in all business lines;
- To compete with Douyin’s in-store business, Meituan will spend more in 2Q23, however FD and insta-shopping continue to have margin upside.
- Our BUY thesis remains unchanged, as we believe investors overestimate Douyin’s impact, while underestimating Meituan’s ability to improve margins.
Weibo (WB US, BUY, TP US$26.9) Earnings Review: Maintain BUY for Margin Improvement
- Weibo’s 1Q23 top line was in line with our est., and non-GAAP net income beat our est./cons. by 6.5%/ 7.6%, due to cost-saving measures.
- While we dial down its 2Q23 revenue forecast, we remain optimistic about its growth in 2H23, as more brand advertisers gradually recover.
- Maintain BUY and TP unchanged, which implies 12X PE in 2023.
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