＜Research＞UBS: MEITUAN-W (03690.HK) Core Biz May be Dented by Weak Macro, But Competition with Douyin Improves; Mkt Shr Regained

　　MEITUAN-W (03690.HK) -5.400 (-4.766%) Short selling $1.20B; Ratio 24.581% continued to face selling pressure this morning (25th) after falling for 2 consecutive days, and last printed at $107.7, cascading 4.9%, losing the 100-day MA (about $108.1). Turnover amounted to $3.02 billion.

　　While China's weakening macro economy may damage MEITUAN-W's core business, including takeaway order growth, ASP and GTV, a better competitive landscape for the business should provide MEITUAN-W with highly resilient and visible future earnings potential, UBS released a research report saying.

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　　This comes from GTV growth (regaining market share from Douyin), revenue re-acceleration and operating gross profit margin recovery (31% in 1Q24, compared with 46% in 2022).

　　With a current forecasted 2025 PE ratio of 13x, UBS believed that the Company is attractive as an industry leader, and kept rating at Buy on MEITUAN-W, with a target price of $158.

　　Through local services agency industry channels, UBS understood that the competition between MEITUAN-W and Douyin in the in-store market continued to stabilize, with Douyin increasingly focusing on profitability, efficiency and monetization, instead of GTV growth, UBS added.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-24 16:25.)

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