Furui: MEITUAN-W (03690) plans to issue US dollar-denominated senior notes, unexpectedly, with a "buy" rating and a target price of HK$150.

Furui released a research report stating that MEITUAN-W (03690) has a "buy" rating with a target price of 150 Hong Kong dollars. The company recommends issuing US dollar denominated notes. The bank pointed out that the details of the batch of notes are not available, but the company's announcement stated that they will mainly be used for refinancing existing offshore debt and other business purposes. The bank believes that this move is not completely unexpected for the market, as Meituan's interim report has already disclosed the company's need to support US dollar payments. Furthermore, Furui believes that Meituan has strong execution capabilities, and has raised its core local business revenue and operating profit prospects. They also acknowledge the synergy effects of the company's various business sectors, with improvements in the fundamentals of Meituan Optimal; Meituan's data for the first two days of the Mid-Autumn Festival holiday also show stable performance.