Credit Suisse: MEITUAN's core local business fundamentals have improved, rating "Buy"

Credit Suisse published a research report indicating that MEITUAN-W (03690.HK) had a total revenue growth of 4.1% year-on-year in the fourth quarter of last year, reaching RMB 92.1 billion, which is in line with the bank's and market expectations. Core local business revenue fell by 1% year-on-year to RMB 64.8 billion, slightly below market expectations of being flat year-on-year, with the bank expecting a decline of 1.3%. The core local business operating loss reached RMB 10 billion. New business revenue grew by 18.9% year-on-year to RMB 27.3 billion, exceeding expectations, with an operating loss of RMB 4.6 billion. The adjusted net loss reached RMB 15 billion, falling short of market expectations but in line with the bank's expectations.

Credit Suisse stated that the fundamentals of MEITUAN's core local business are improving, and new businesses are on track, maintaining a "Buy" rating for MEITUAN with a target price of HKD 130