Market Insight | Meituan-W rises more than 3%, $2 billion buyback plan demonstrates development confidence, Goldman Sachs points to strong profit visibility
Meituan-W rose more than 3%, as of the time of publication, it rose by 3.2% to HKD 116.2, with a turnover of HKD 29.33 billion. On the news front, following the announcement of a $1 billion buyback plan at the end of November last year, Meituan has announced another large buyback plan. The company recently announced that the board of directors has decided, in accordance with the share repurchase authorization passed at the shareholder meeting on June 30, 2023, to occasionally repurchase up to $2 billion worth of Class B ordinary shares in the open market. The company will repurchase shares as appropriate under relevant rules. Fubon believes that the $2 billion stock buyback plan announced by the group is a positive factor, reflecting confidence in the outlook and creating value for shareholders. Goldman Sachs stated that Meituan remains one of the main "buy" recommendations for the second half of the year in the Chinese internet sector, based on strong earnings visibility and the potential market size (TAM) for further online penetration to enhance local services. Meituan is reiterated with a "buy" rating and a target price of HKD 148
According to the Wise Finance APP, Meituan (03690) surged more than 3%, reaching a 3.2% increase as of the time of publication, closing at HKD 116.2 with a turnover of HKD 29.33 billion.
On the news front, following the announcement of a USD 1 billion buyback plan at the end of November last year, Meituan has announced another substantial buyback plan. The company recently announced that the board of directors has decided, in accordance with the share repurchase authorization passed at the shareholder meeting on June 30, 2023, to occasionally repurchase up to USD 2 billion worth of the company's Class B ordinary shares on the open market. The company will conduct the repurchase when it complies with relevant regulations.
Furui believes that the USD 2 billion stock buyback plan announced by the group is a positive factor, reflecting confidence in the prospects and creating value for shareholders. Goldman Sachs stated that Meituan remains one of the main "buy" recommendations for the second half of the year in the Chinese internet sector, based on strong earnings visibility and the potential market size (TAM) for further online penetration to enhance local services. They reiterated a "buy" rating for Meituan with a target price of HKD 148