Breaking News: Hang Seng Tech Index Turns Positive, Meituan Rises Over 5%, Raise Target Price to HKD 151
M+ Global Updates 11/06/2024 14:30

The major indices of the Hong Kong stock market saw an afternoon rebound, with the Hang Seng Tech Index leading the charge by turning positive. Meituan $MEITUAN-W 03690.HK$ surged over 5%, becoming the top performer among the index's constituents. The Hang Seng Index $Hang Seng Index HSI.HK$ narrowed its losses to 0.8%.

China Merchants Securities: Raises Meituan Target Price to HKD 151, Rating "Overweight"

China Merchants Securities reports that Meituan's first-quarter revenue grew 25% year-on-year to RMB 73 billion, exceeding expectations by 6%. Adjusted net profit increased 36% to RMB 7.5 billion, surpassing expectations by 25%. For the second quarter, the firm predicts an 18% year-on-year revenue increase, driven by strong growth in Meituan Instashopping (39%) and in-store, hotel, and travel services (22%).

Overall instant delivery revenue is expected to grow 14%, boosting adjusted net profit by 29% with a net profit margin of 12.4%. Key factors for profit margin improvement include efficiency gains in food delivery, reduced competition in other segments, and faster-than-expected loss reduction in Meituan Select. Consequently, the target price is raised from HKD 148 to HKD 151, with a rating of "Overweight."

HSBC Has Completed the Acquisition of Citibank's Personal Wealth Management Business In China

Meanwhile, HSBC $HSBC HOLDINGS 00005.HK$ has completed the acquisition of Citibank's personal wealth management business in mainland China. This acquisition adds over 300 staff to HSBC's workforce. Additionally, Citibank's investment assets, deposits, and customer portfolios in 11 major cities in mainland China have been integrated into HSBC.

Last year, HSBC saw a 53% year-on-year increase in wealth management investment assets in mainland China, with the wealth management client base growing by over 30% annually. Nuno Matos, Global CEO of HSBC Wealth and Personal Banking, stated that this acquisition further demonstrates HSBC's long-term confidence in the Chinese market. It also supports the group's ongoing efforts to assist clients in optimizing asset allocation and enhancing long-term investment returns.


The content is provided as general information only and should not be taken as investment advice. All the contents shall not be taken as a recommendation to buy or sell any security or financial instruments. Any action you take resulting from information, analysis, or commentary on this article is your responsibility. Please consult your investment advisor before making any investments.

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