Meituan: I Am Bullish Again (Rating Upgrade)
Summarize this article with:
Eleceed Capital597 FollowersFollow5ShareSavePlay(10min)CommentsSummaryMeituan is upgraded to bullish as the subsidy war peaks and market share rebounds, signaling a clearer path to margin recovery.Q3 revenue softness was optical, driven by contra-revenue from incentives, while New Initiatives delivered 15.9% y/y growth and improved margins.Subsidy levels are trending lower post-summer, with user engagement and GTV market share recovering, indicating competitive intensity is waning.Keeta's rapid profitability in Hong Kong and international expansion de-risk earnings, positioning New Initiatives as a future margin and growth driver. winhorse/iStock Unreleased via Getty Images Summary I downgraded to a hold rating for Meituan (MPNGF) (MPNGY) as I was worried about the impacts of the subsidy war. While Q3 showed us how painful that pressure was, it also showed that the worst isThis article was written byEleceed Capital597 FollowersFollowI'm a passionate investor with a strong foundation in fundamental analysis and a keen eye for identifying undervalued companies with long-term growth potential. My investment approach is a blend of value investing principles and a focus on long-term growth. I believe in buying quality companies at a discount to their intrinsic value and holding them for the long haul, allowing them to compound their earnings and shareholder returns.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You