MPNGY - Meituan: Consider Maiden Buyback And Results Preview

2024-01-30 16:26:18 ET

Summary

• It is encouraging to know that Meituan has done its maiden buyback in January, but the buyback yield implied by the $1 billion share repurchase plan is less than 2%.
• I take the view that Meituan's Q4 2023 results disclosure in March 2024 is less likely to throw up positive surprises.
• In the absence of visible re-rating catalysts, Meituan's valuations might continue to be depressed, which explains my Hold rating for the stock.

Elevator Pitch

I award a Hold rating to Meituan ( MPNGF ), (MPNGY) [3690:HK].

Previously, I assessed the competitive dynamics for Meituan, and highlighted how macroeconomic headwinds could potentially affect MPNGF's outlook in my prior article written on November 13, 2023....

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