Meituan 3690 02 (Jun 23 - Dec 27)

[winston]

Meituan’s food delivery market dominance in China remains stable at 70%, report says

by Hannah Wang

Citing internal data, Leiphone.com reported that Meituan’s daily food delivery orders reached 90 million this month

Daily orders on Meituan reached 90 million in recent days.

Daily orders on JD.com’s rival service have reached 25 million, the company announced on June 18. It launched a food delivery service in February, expanding its instant delivery offering, which aims to bring items to customers’ doors typically within an hour.

Alibaba said last month that the combined daily orders on Ele.me and its Taobao Instant Commerce reached 40 million.

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... pe=section

[winston]

not vested

<Research>BOCOMI Expects MEITUAN-W to Keep 60% Mkt Shr in Food Delivery Amid CN Internet Platforms' Lifestyle Consumption Biz Arrangement

BABA-W (09988.HK) recently announced the integration of its businesses like Ele.me and Fliggy into its e-commerce business group, while MEITUAN-W (03690.HK) also announced an upgrade to its MT Instashopping brand, BOCOMI published a research report saying.

Both major internet platforms are enhancing their integration of consumption resources. It is expected that BABA-W, by aggregating instant retail, e-commerce and travel demands, is evolving from an e-commerce platform into a lifestyle consumption platform.

Related News: CICC Expects JD/ Meituan to See Most Significant Earnings Decline in 2Q; Summer Tea & Coffee Sale Peak Season Subsidies to Continue

The business integration is anticipated to enhance Taobao user fidelity and drive growth in conversion rates across all categories on the whole platform.

The broker also believed that, although the food delivery business is facing market competition, MEITUAN-W has the advantage of merchant and transportation reserve, and estimated that its market share in terms of GMV will still be maintained at 60%.

Source: AASTOCKS Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

<Research>CICC: MEITUAN-W Shrinking Community Group Buying Biz to Focus on Core Operations

MEITUAN-W (03690.HK) is shrinking its community group buying business to focus on its core operations, CICC released a research report noting.

MEITUAN-W's Meituan Select is further contracting, and will subsequently focus on key business development.

It is understood that Meituan Select is closing operations in certain regions and will focus on advantageous areas, retaining business only in Guangdong, Hangzhou, and other locations, with the contraction speed exceeding market expectations.

This suggests that the business, in which the company has invested over RMB80 billion since 2020, will no longer bear the burden of retail strategy.

CICC kept an Outperform rating on MEITUAN-W with a target price of HKD177.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Meituan's South African shareholder Prosus offloads HK$2bln stake, more sales expected
 
South African technology investor Prosus is planning to further reduce its stake in Chinese food delivery platform Meituan (3690), US$250 million (HK$1.95 billion) worth of shares over the past two weeks, Bloomberg reported.

Based on Meituan’s current share price of HK$127.40, Prosus is estimated to have offloaded roughly 15 million shares, or about 0.25 percent of the company’s outstanding equity.

Prosus still holds over 257 million Meituan shares, around 4.2 percent of the company, valued at about HK$32.8 billion. It remains Prosus’s second-largest holding after Tencent (0700).

Source: The Standard

https://www.thestandard.com.hk/market/article/307890/

[winston]

not vested

<Foresight>Brokers Expect MEITUAN-W's 2Q Adj. NP to Dive 38%+ Due to Food Delivery War

MEITUAN-W (03690.HK) is set to announce its 2Q25 results next Wednesday (27th).

Earlier, a food delivery war broke out among Chinese e-commerce platforms.

JD-SW (09618.HK) has poured over RMB10 billion in subsidies after April.

In response, MEITUAN-W launched discount group buying services of food delivery and issued large consumer vouchers as countermeasures.

Related NewsHaitong Int'l Expects JD-SW (09618.HK) to See New Biz Loss Expansion This Quarter w/ TP $167; Rating Kept at Outperform

According to the forecasts from seven brokers summarized by our reporters, MEITUAN-W's 2Q25 non-IFRS adjusted net profit is expected to be RMB7.229-10.062 billion, a YoY decline of 26-46.9% from RMB13.606 billion in the same period last year.

A median of RMB8.358 billion also marks a YoY drop of 38.6%.

Broker | 2Q25 Non-IFRS Adj. NP Forecast (RMB) | YoY Change
Nomura | 10.062 billion | -26%
China Renaissance | 9.393 billion | -31%
UBS | 8.671 billion | -36.2%
Citi | 8.358 billion | -38.6%
CCBI | 8.266 billion | -39.2%
CICC | 7.685 billion | -43.5%
Goldman Sachs | 7.229 billion | -46.9%

Calculated on MEITUAN-W's 2Q24 non-IFRS adjusted net profit of RMB13.606 billion.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Meituan’s profit crumbles during food delivery war with Alibaba

Net income plummeted 97% to 365.3 million yuan (US$51 million or RM215.8 million) for the June quarter, despite a 12% rise in revenue.

This month, JD.com reported a halving in net income for the quarter.

Alibaba has posted muted growth and is set to report earnings on Friday.

Following a warning from industry regulators, the three corporations in August pledged to cease their “disorderly competition” and avoid a self-destructive price war.

Faced with margin pressure at home, Meituan is looking overseas.

Its own aggressive pricing strategy forced Deliveroo Plc to retreat from Hong Kong after a decade of operating in the city.

Its food delivery app Keeta has rolled out service to Saudi Arabia’s major cities since entering the market in 2024.

It’s also planning to spend US$1 billion over five years to bring its food delivery service to Brazil.

And Meituan is now eying markets including Qatar and Kuwait over the next three years, according to local media.

But that expansion is also taxing its coffers. Meituan reported a 27% rise in cost of revenues during the quarter, which it partly blamed on that overseas exploration.

Source: Bloomberg

https://theedgemalaysia.com/node/768385

[winston]

not vested

<Results>MEITUAN-W 2Q Non-IFRS Adj. Profit Slips 89% to RMB1.493B, Way Below Forecast

MEITUAN-W (03690.HK) announced its second-quarter results for the period ending June 30, 2025, reporting a net profit of RMB365 million, a 96.8% YoY plunge.

The non-IFRS adjusted EBITDA slid 81.5% to RMB2.782 billion, and adjusted net profit dived 89% to RMB1.493 billion, way below the consensus forecast from eight brokers, which ranged from RMB7.229 billion to RMB10.062 billion.

The company recorded revenue of RMB91.84 billion in 2Q, up 11.7% YoY, slightly below the consensus estimate from eight brokers, which ranged from RMB92.067 billion to RMB94.534 billion.

Related News: CLSA Lowers MEITUAN-W's TP to HKD150, Estimates Competitive Impact to Extend to 3Q

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

Meituan (3690 HK) 2Q25: Earnings Miss; Subdued Margin Outlook

In 3Q25 Amid Intense Competition Meituan’s 2Q25 earnings missed expectations.

Total revenue grew 12% yoy to Rmb91.8b, 2-4% below our and consensus estimates.

Non-IFRS net profit slumped 89% yoy to Rmb1.5b, with net margin shrinking 15ppt yoy to 2%, missing consensus estimate.

For 2H25, we are cautious on Meituan and expect to see margin pressure stemming from intense competition in the FD business.

Downgrade to SELL with a lower target price of HK$100.00.

Source: UOBKH

https://research.uobkayhian.com/content ... e=hs_email

[winston]

not vested

<Hindsight>Brokers' Latest Ratings/ TPs/ Views on MEITUAN-W Post-Results

MEITUAN-W (03690.HK) announced its 2Q25 results yesterday (27th) after market close, which fell significantly short of expectations.

Its 2Q25 core local commerce operating profit/ core-related operating profit tumbled by 75.6%/ 19.4 ppts YoY to RMB3.721 billion/ 5.7%.

Broker│Investment Rating│Target Price (HKD)
Nomura│Buy│176
Jefferies│Buy│155
UBS│Buy│172->148
Goldman Sachs│Buy│159->144
BofA Securities│Buy│136
Morgan Stanley│Overweight│150->135
HSBC Global Research│Buy│160->125
JPMorgan│Overweight->Neutral│150->105
BOCI│Buy->Neutral│168->100
UOB Kay Hian│Sell│40->100


Broker│Viewpoint

Nomura│Growth and profit of the food delivery business under pressure

Jefferies│2Q revenue growth and food delivery operating profit missed

UBS│Axed 2025 earnings forecasts due to intense competition, expecting a full-year loss may occur with an estimated loss of HKD2-3 per food delivery order in 3Q

Goldman Sachs│2Q results missed, intensified competition in food delivery since May has led to a greater-than-expected loss in this segment for 2Q

BofA Securities│2Q results missed amid fierce food delivery competition

Morgan Stanley│3Q service operating loss expected at RMB15 billion, with the narrowing of new business losses disheartening

HSBC Global Research│Slashed 2025-27 revenue forecasts by 5-6% as industry competition continues to heat up

JPMorgan│Sharply cut 2025-26 EPS forecasts, alongside a downgraded rating and a lower target price

BOCI│2Q results missed; short-term earnings forecasts reduced dramatically due to intense competition

UOB Kay Hian│2Q earnings missed, and fierce competition is heaping pressure on 3Q profit margins, making outlook bleak

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

not vested

MEITUAN-W VP Says Catering Sector Entering Deep Reshuffle Phase, Views Quality Dining as Industry Foundation

Wei Wei, Vice President of MEITUAN-W (03690.HK), said that bustling dine-in business is the most important sign of a thriving restaurant industry, and MEITUAN-W is poised to be a long-term companion in promoting quality dining, as the catering sector is entering a period of deep reshuffling, according to the Securities Times.

Wei further added that quality dining, instead of a fleeting trend driven by traffic, is the very foundation that must be safeguarded.

Related News: HSBC Research Expects MEITUAN-W (03690.HK) Food Delivery Losses to Peak in 3Q, Slashes TP to $114, Keeps Rating at Buy

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN