Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>JPM: Fines on CN 'Ghost Restaurant' Manageable; Higher Order Quality Across Industry
Recommend 29 Positive 55 Negative 17 |
||||
|
||||
|
The market may have misinterpreted the State Administration for Market Regulation (SAMR)'s administrative penalties on "ghost restaurant" announced on April 17 as another tightening of China's internet regulation and as a straightforward negative impact on food delivery platforms' EPS, JP Morgan said in its report. The broker's view is more constructive and more differentiated by stock. The broker noted that the direct fines are manageable in amount, while the operational rectification requirements are relatively limited. More importantly, the economic impact is that the ruling will eliminate a batch of non-compliant, low average ticket, structurally loss-making orders. This will help improve industry order quality and support higher AOV, revenue, and operating profit per order. As a result, the broker believed JD-SW (09618.HK) is the most clearly positive beneficiary of this development; BABA-W (09988.HK) will see constructive impact owing to narrative de-risking; the impact on MEITUAN-W (03690.HK) has largely been priced in; and PDD (PDD.US) faces a mildly negative impact. Auto-translated by AI AASTOCKS Financial News |
||||
Copied to Clipboard
 |
||||
