The Chinese food delivery behemoth Meituan, announced a share buyback and reported better-than-expected quarterly results, which sent its shares skyrocketing.
Throughout the week, the business's Hong Kong-listed stock had increased by 7.75% Hong Kong dollars, with the largest daily percentage achievement in six months.
Meituan Showed An Upbeat Earnings Report
The Beijing-based business reported on Wednesday that its revenue increased 21% to 82.25 billion yuan from a year prior and that its net earnings more than tripled to 11.35 billion yuan, or US$1.59 billion. Both figures beat estimates.
The food delivery company later announced in an additional filing that it would buy back up to US$1.0 billion worth of shares, citing optimism about its company's outlook and prospects.
Notwithstanding an adverse macroeconomic setting, Meituan produced better-than-expected outcomes, according to a research note from Citi economists led by Alicia Yap.
According to them, cost efficiency and other factors may cause the business's increase in profits to surpass that of earnings and total transaction value growth in the second quarter of 2024.
