Chinese meal-ordering and food delivery giant Meituan gains nearly 5% in Hong Kong on expectation of strong earnings for the second quarter of the year.
China International Capital Corporation (CICC) said in a note that Meituan’s Q2 earnings will beat market expectations mainly driven by stronger-than-expected recovery in food delivery business and hotel & travel booking business. The bank forecast Meituan’s Q2 revenue to grow by 13% year over year to 49.5 billion yuan, sharply higher than market consensus of 3% growth, and Meituan is expected to book an adjusted net loss of 1.12 billion yuan.
Guangfa Securities said in a note that Meituan’s food delivery business and meal-ordering for dine-in business in Q2 will be higher than market expectation and the broker now expected its Q2 revenue to grow by 12% year over year to 48.4 billion yuan.
In addition, Zhonggeng Fund Management, managed by Qing Dongrong, a star fund manager in China, increased holdings of Meiutan be the end of Q2, according to its Q2 disclosure.
