Greater China Equity Long/Short Analyst

Eric Chen

With a blend of sell-side and buy-side perspectives, Eric has covered and researched hundreds of Greater China equities in TMT and consumer spaces - two sectors woven together by the overarching thesis of technology empowering consumption. 

Eric is highly experienced in fundamental equity long short strategy. He seeks to produce differentiated and original research that combines holistic qualitative framework, unique angles and robust modelling. The process helps gain deep insights into critical value drivers misunderstood by the market, which results in mis-priced stocks and hence long/short opportunities.

Meituan (3690 HK) - Expect Significant Loss Reduction for New Businesses

[Meituan (3690 HK, SELL, TP HK$70) TP Change]: Margin Reflects Persistent Competitive Pressure

Equity Bottom-Up

<ul>
<li>Meituan has navigated through its most challenging period since IPO as competition moderates and reorg comes close to completion. </li>
<li>1Q results should kick off an upward earnings cycle through to the end of 2024 when the company’s efforts to revamp loss-making new initiative businesses gather pace. </li>
<li>That said, lack of clear topline driver remains the key reason for our cautious view about the sustainability of re-rating. Maintain neutral.</li>
</ul>


Meituan has navigated through its most challenging period since IPO as competition moderates and reorg comes close to completion. 
1Q results should kick off an upward earnings cycle through to the end of 2024 when the company’s efforts to revamp loss-making new initiative businesses gather pace. 
That said, lack of clear topline driver remains the key reason for our cautious view about the sustainability of re-rating. Maintain neutral.


Meituan (3690 HK): Lack of Clear Topline Driver Remains a Concern