Shares of the Chinese delivery firm fell to their lowest level since late March 2020 as it struck a cautious tone in its third quarter earnings call, according to a transcript by FactSet.
“We think in Q4 revenue year-over-year gross profit delivery will be slightly lower than the Q3 growth rate,” Meituan management warned on the call.
The company said on Tuesday its third-quarter revenue rose 22.1% to 76.47 billion Chinese yuan ($10.81 billion) from a year earlier. Adjusted net profit came in at 5.7 billion yuan ($809 million).
Meituan
3690-HK:Hong Kong Stock Exchange
83.55
-3.10 (-3.58%)
Last | 3:51 PM CTT
Hong Kong’s main Hang Seng index fell nearly 2%.
TUE, NOV 28 202310:51 PM EST
South Korea markets will offer the highest earnings growth next year, Goldman Sachs says
South Korean stocks have so far emerged as an undervalued and underloved part of Asia-Pacific equity markets but that is exactly what could make them attractive to investors next year, according to Goldman Sachs.
Goldman even argued that South Korea markets offer the highest potential earnings growth in 2024 in the Asia-Pacific region as its semiconductor sector recovers from steep profit declines. The investment firm remains overweight on South Korean stocks.
“We forecast EPS growth to rebound to 54% in 2024 and to grow 20% further in 2025,” Goldman said with regards to Korea’s Kospi benchmark index.
South Korea is Asia’s fourth largest economy but its markets are often considered undervalued by analysts, leading to what is sometimes referred to as the “Korea discount.”