Wang & Lee Group board approves 250-to-1 reverse share split
On Tuesday, Benchmark analyst Fawne Jiang adjusted the price target for Meituan Dianping (HK:3690:HK) (OTC:MPNGF), a leading Chinese e-commerce platform, to HK$165.00, a decrease from the previous HK$210.00. Despite the reduction, the firm sustained a Buy rating on the stock. The move comes after Meituan reported strong first-quarter results but faces a challenging fiscal year 2025.
Meituan is currently engaged in strategic investments aimed at both growth and defense. The company is experiencing stiff competition, especially from JD.com (JD-Buy), which has gained significant market share rapidly by employing aggressive subsidy strategies. To counteract these challenges, Meituan is expanding its operations abroad, following the early success of its Keeta brand in Saudi Arabia.
The company is also focusing on its social responsibility initiatives. Meituan plans to expand occupational injury insurance and is preparing to introduce a new social security program for its couriers. These efforts are part of a broader welfare agenda that the company is pursuing.
However, due to the dynamic and competitive environment, Benchmark anticipates financial volatility for Meituan in the upcoming quarters. This forecast has led to a revision of the fiscal year 2025 estimates and the decision to lower the price target. The new target reflects the potential impact of the competitive pressures and investment initiatives on the company’s financial performance.
Meituan’s strategic moves are aimed at strengthening its market position and enhancing the welfare of its workforce. While the company has demonstrated solid performance in the first quarter, the lowered price target indicates caution due to the anticipated investment-related financial fluctuations in the near future.
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