The Zhitong Finance App learned that Citibank released a research report saying that Meituan-W (03690) is expected to announce the third quarter results in late November, and the overall data is generally in line with the bank's and market expectations. The bank maintained the company's profit forecast, continued to give a “buy” rating, and maintained a target price of HK$120.

The bank estimates that Meituan's total revenue for the third quarter was RMB 114.2 billion (same below), an increase of 20% over the previous year; adjusted net profit was RMB 2.56 billion. The total estimated market revenue and adjusted net profit were $113.3 billion and $2.2 billion respectively.

The bank expects Meituan's core local business revenue to increase by about 15% year-on-year to 77.3 billion yuan in the third quarter, and operating profit of 4.15 billion yuan. The operating profit margin of the takeout business is expected to be 1.1%, and the economic benefit of each order is 8 cents.

Looking ahead to the fourth quarter, the bank anticipates that seasonal factors and cooler weather may drive up rider costs, but Meituan's continued cost control and operational efficiency should support a month-on-month improvement in the economic benefits of each order. The bank expects the operating profit margin of the in-store business to remain generally stable.

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