Meituan 3690 02 (Jun 23 - Dec 27)

[winston]

not vested

<Research>Citi Expects MEITUAN-W to Report Adj. Loss of RMB16.3B in 3Q, Cuts TP to $117 with Neutral Rating

Citi released a research report on MEITUAN-W (03690.HK), of which food delivery subsidy amounts may have peaked in 3Q25, leading to further adjustments in loss assumptions.

Citi estimated Meituan's core local commerce (CLC) and on-demand delivery operations, to have incurred losses of RMB15 billion and RMB20 billion respectively in 3Q25, while losses from new initiative are expected to remain around RMB2.37 billion.

Citi's forecast for Meituan's adjusted operating loss and EBITDA loss for 3Q25 are RMB17.3 billion and RMB16 billion respectively.

Citi believed that the anticipated improvement in unit economics (UE) by competitors in October is more attributed to increased order density and operational efficiency rather than significant subsidy cuts.

After adjusting forecasts, Citi slashed Meituan's target price from HKD133 to HKD117, maintaining a Neutral rating and anticipating persistent short-term pressure.

Citi expected Meituan's total revenue for 3Q25 to be RMB97.25 billion, implying a YoY growth of 3.9%, with an adjusted loss of RMB16.3 billion.

The market consensus expected revenue of RMB98.1 billion and an adjusted loss of RMB12.3 billion.

Source: AASTOCKS Financial News

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

[winston]

not vested

MEITUAN-W: Customers Inclined to Seek Super Value for Money; AI Can Help Restaurants Make Operational Decisions

Chinese media learned from data released by MEITUAN-W (03690.HK) that about 70% of its new food delivery orders this year, fell into the low-price range of under RMB15 and nearly 50% of the order growth driven by subsidies came from beverages after the food delivery wars in May.

Meanwhile, the growth rate of China's restaurant industry has also slowed noticeably in recent years and the 2025 dine-in spending per customer has dropped back to the level of ten years ago.

Wang Puzhong, CEO of MEITUAN-W's core local commerce sector, said that customers' pursuit of super value for money is reshaping the restaurant industry but he reminded that value for money should come from structural cost advantages and improvement in overall operational capabilities, instead of from involutionary competition.

Wang also highlighted AI's helping role in restaurant operations. MEITUAN-W has recently launched different AI tools to assist merchants in making decisions regarding site selection, menu development and operational strategies, among others.

Source: AAStocks Financial News

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