Meituan's Plan to Cut Losses for Community Grocery Business Likely Welcomed -- Market Talk

Dow Jones03-25

0712 GMT - Meituan's goal of reducing losses for its new businesses, in particular its community grocery business Meituan Select, will lead to a smaller scale for this business but the move will likely be welcomed by investors, according to Nomura analysts Jialong Shi and Rachel Guo in research note. The delivery giant said in latest earnings that they plan to increase the price mark-up and reduce subsidies for Meituan Select. The analysts add many investors have lost faith in this business and estimate that the losses from new business will likely to narrow by 45% in 2024 after Meituan's comment. The analysts keep a buy rating, with a target price at HK$129. Shares are 5.7% higher at HK$93.35. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

March 25, 2024 03:12 ET (07:12 GMT)

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(tracy.qu@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 25, 2024 03:12 ET (07:12 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Meituan's Plan to Cut Losses for Community Grocery Business Likely Welcomed -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMeituan's Plan to Cut Losses for Community Grocery Business Likely Welcomed -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-25 15:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>0712 GMT - Meituan's goal of reducing losses for its new businesses, in particular its community grocery business Meituan Select, will lead to a smaller scale for this business but the move will ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0043850808.USD","symbol_name":"HSBC GIF ASIA EX JAPAN EQUITY \"AD\" INC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2422563472","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2422563472","pubTimestamp":1711350720,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0712 GMT - Meituan's goal of reducing losses for its new businesses, in particular its community grocery business Meituan Select, will lead to a smaller scale for this business but the move will likely be welcomed by investors, according to Nomura analysts Jialong Shi and Rachel Guo in research note. The delivery giant said in latest earnings that they plan to increase the price mark-up and reduce subsidies for Meituan Select. The analysts add many investors have lost faith in this business and estimate that the losses from new business will likely to narrow by 45% in 2024 after Meituan's comment. The analysts keep a buy rating, with a target price at HK$129. Shares are 5.7% higher at HK$93.35. 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The delivery giant said in latest earnings that they plan to increase the price mark-up and reduce subsidies for Meituan Select. The analysts add many investors have lost faith in this business and estimate that the losses from new business will likely to narrow by 45% in 2024 after Meituan's comment. The analysts keep a buy rating, with a target price at HK$129. Shares are 5.7% higher at HK$93.35. 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