3690.HK: Accelerating Growth In Supply And Demand for Online Deliveries Leads To Better 3Q20 Results
Meituan will report 3Q20 results on November 30th before the markets open with a 6am EST conference call. We are positive on Meituan’s performance in 3Q20. The demand for food delivery services accelerated in 3Q20 as business activities and life returned to normal. The supply side of food delivery has been growing significantly as restaurant re-openings and their online migration continues their upward trend nationwide. The number of food delivery orders and restaurants joining online services were up significantly at 50% Y/Y and 22% Y/Y, respectively, in 3Q20. Based on our data and calculation, Meituan’s 3Q20 revenue is likely to be better than consensus at RMB33,833M (23.1% Y/Y growth) and our model at RMB33,673M.