Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>G Sachs Predicts MEITUAN-W Food Delivery Biz' Social Security Cost Manageable
Recommend 18 Positive 41 Negative 19 |
||||
|
||||
|
MEITUAN-W (03690.HK) will pay social security for full-time and stable part-time riders across China. Goldman Sachs released a research report on this, saying that it noticed Meituan’s provision of occupational injury insurance for riders in seven pilot provinces since July 2022 and launch of more measures to support a healthy rider ecosystem. Given the progressive nature of the latest plan, the broker expected the incremental social security cost in the first year to be RMB0.1-0.2 per order (the incremental cost may be equivalent to RMB2-3 billion), which is at a manageable level. Although JD-SW (09618.HK) recently announced a commission-free strategy to enter the food delivery sector, the threshold for the food delivery business is very high, and therefore Goldman Sachs was not overly concerned about market competition for MEITUAN-W. The broker gave MEITUAN-W a Buy rating with a target price of $200. AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
