China's Meituan plans share buyback valued at up to $1 billion
By P.R. Venkat
Meituan (HK:3690), a China-based shopping-and-delivery platform, plans to buy back its shares valued up to $1.0 billion, a day after announcing solid third-quarter results.
The company said shares will be repurchased from the open market starting Dec. 1.
The buyback would be made using current financial resources, the company said Wednesday. The move is aimed at boosting the value of its stock, which has fallen more than 40% this year.
Like many Chinese companies, Meituan, one of China's largest internet companies by market capitalization, suffered because of a weak domestic economy, which hurt consumption and consumer confidence.
However, in the third quarter, the company's on-year profit nearly tripled to over $500.0 million, with revenue hitting over $10.0 billion.
"The company believes that the share repurchase will demonstrate the company's confidence in its business outlook and prospects and would, ultimately, benefit the company and create value for its shareholders," Meituan said.
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
11-28-23 1916ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations