Meituan Losses Narrowed in 1Q But Margins Still Face Headwinds -- Market Talk

Dow Jones06-12

0357 GMT - Meituan still needs to demonstrate its ability to stabilize its margins over the long term, says Morningstar analyst Kai Wang in a research note. The analyst is encouraged by the shopping-and-delivery platform's progress in narrowing losses in 1Q. Still, the analyst says the company faces long-term headwinds as there is continuous pressure on operating margins for its food delivery and in-store businesses due to looming competition and lower average value per order. Morningstar raises its fair value estimates slightly to HK$106.00 from HK$102.00, citing its improvement of operating losses in its new initiatives business. Shares last at HK$113.80. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

June 11, 2024 23:57 ET (03:57 GMT)

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Morningstar raises its fair value estimates slightly to HK$106.00 from HK$102.00, citing its improvement of operating losses in its new initiatives business. Shares last at HK$113.80. 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The analyst is encouraged by the shopping-...</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":"LU0048580855.USD","symbol_name":"富达大中华区A","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2442308759","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2442308759","pubTimestamp":1718164620,"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":"0357 GMT - Meituan still needs to demonstrate its ability to stabilize its margins over the long term, says Morningstar analyst Kai Wang in a research note. 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