Morgan Stanley: Upgrade Meituan Dianping's rating to "Overweight", with a target price of HK$94

Golden Ten Data News on January 9th, Morgan Stanley released a research report stating that the future stock price of Midea Group (00300.HK) will rise relative to the index in the next 45 days. The bank’s target price for Midea is 94 Hong Kong dollars, with an investment rating of “hold”. The National Development and Reform Commission announced the details of the 2025 consumer goods replacement plan to expand the coverage and increase the subsidy for air conditioners. The report stated that the above policy details are slightly better than expected, especially for air conditioners. Midea and other household appliance companies are expected to benefit more and are expected to see a positive response in the stock price in the near future. The 2025 forecast price-earnings ratio (P/E) of Midea’s A/H shares is approximately 13 times, slightly lower than the average level of Midea A since 2017, but slightly higher than the average level of Midea’s Hong Kong stocks since its listing in September 2024. The bank believes this is attractive because it estimates Midea’s compound annual earnings growth rate to be as low as 10% in 2024-26.