Pandemic rebound expected to affect 1H22F results
? Meituan reported 4Q21 revenue of Rmb49.5bn, up 30.6% yoy, and an adjusted net loss
of Rmb3.9bn, compared to a net loss of Rmb1.4bn in 4Q20, slightly above our
expectations because of a better gross margin and low er expenses.
? Meituan expects the food delivery subsidy ratio in FY22F to be low er than in the past
few years and advertising revenue to steadily increase. But to support SME merchants,
Meituan’s monetization rate w ill be affected in the short term.
? We also expect the operating loss from new initiatives to narrow in FY22F.
? Reiterate Add w ith a DCF-based TP of HK$227.