📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Chinese food delivery giant Meituan surges on positive earnings

Published 03/25/2024, 12:09 AM
©  Reuters
HK50
-
3690
-

Investing.com-- Shares of Chinese food delivery app Meituan (HK:3690) rose sharply on Monday, tracking stronger-than-expected earnings as the firm ducked a broader slowdown in the Chinese economy and consumer spending. 

Meituan’s Hong Kong shares jumped 8.1% to a four-month high of HK$95.35, underpinning a 0.4% rise in the broader Hang Seng index.

The firm clocked revenue of 73.7 billion yuan ($10 billion) in the quarter to December 31, and also swung to a profit for the period from a loss a year ago. 

Earnings for the firm, which offers services including quick groceries, ride-sharing and maps- were boosted by a growing push into Hong Kong markets. Meituan had set up a new food delivery unit in Hong Kong last year, broadening its scope from mainland markets. 

But Meituan’s local market benefited from China’s reopening, with the firm’s core delivery services business clocking strong growth as demand rebounded from 2022 lows. Meituan’s 2022 earnings were dampened by China’s strict anti-COVID measures, which were lifted only in early-2023. 

A rebound in travel and recreational demand also saw hotel bookings on its platform jump 100% through 2023. 

Still, the Chinese economy is grappling with a sustained decline in consumer spending and business activity. Weak spending also saw the country slip into deflationary territory in late-2023, with consistent monetary stimulus measures doing little to alleviate this pressure. 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.