Meituan 3690

[winston]

vested

<Research>Citi Drops MEITUAN-W's TP to $204; Firm May Lift Subsidies to Counter Competition from JD-SW

According to a report from Citi, while MEITUAN-W (03690.HK) 's 1Q25 results are expected to be in line with both its and the market's forecasts, the focus will be on 2Q and full-year growth in food delivery volume, average order value, gross transaction value, revenue, rider costs, and the impact on unit economics.

In Citi's opinion, JD-SW (09618.HK)'s initial food delivery sales mainly reflected broader user adoption, which was driven by the company's attractive discounts and subsidies that encouraged users to order drinks, snacks, and meals more frequently.

This impact may be limited on MEITUAN-W's delivery sales in the near term, but the intensity of discounts, appealing rider compensation, and the waiving of merchant commissions could force MEITUAN-W to ramp up subsidies for users, riders, and merchants, and accelerate the rollout of rider incentives, which will in turn weigh on its revenue growth and unit economics.

Citi lowered its target price for MEITUAN-W from $217 to $204, with a Buy rating remaining in place.

Source: AAStocks Financial News

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

[winston]

not vested

<Research>Citi Expects MEITUAN-W to Bear Brunt of CN Regulatory Guidelines on Fee Charges by Online Platforms to Merchants

Citi has published a report viewing the latest Compliance Guidelines for Charging Behaviors of Online Trading Platforms (Draft for Comments) issued by the State Administration for Market Regulation as part of a continuous process by watchdogs to ensure the healthy and sustainable development of the platform economy.

In Citi's opinion, the ultimate goal of the Chinese government is to improve the business environment for merchants and increase their income, and so platforms that provide services and facilitate transactions for small-scale merchants are expected to face greater pressure.

Among the Chinese internet platforms under Citi's coverage, it is estimated that both commission and monetization rates will slide over time.

The platforms to be most affected include MEITUAN-W (03690.HK), BABA-W (09988.HK), JD-SW (09618.HK) .

Source: AAStocks Financial News

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

[winston]

not vested

Meituan (3690 HK)

1Q25: Earnings Beat; Expecting Margin Pressures As FD Competition Intensifies

Meituan’s 1Q25 results are in line with expectations.

Total revenue grew 18% yoy to Rmb86.6b, in line with our and consensus estimates.

Non-IFRS net profit was Rmb10.9b, with net margin expanding 2ppt yoy to 12.6%, beating consensus estimates by 13%.

For 2025, we turn cautious on Meituan and expect to see margin pressure stemming from intense competition in the FD business.

Downgrade to HOLD with a lower target price of HK$140.00.

Source: UOBKH

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

[winston]

not vested

<Research>HSBC Research Lists 2Q-4Q Food Delivery Rev./ Operating Profit per Order Forecasts for MEITUAN-W (Table)

Item│ 1Q25│2Q25 Forecast│ 3Q25 Forecast│4Q25 Forecast
Revenue from food delivery business│41.325 billion│42.437 billion│49.219 billion│45.847 billion
-YoY change│+14%│+5%│+5%│+6%

Average daily orders of food delivery business│57.5 million orders│64.6 million orders│73.2 million orders│68.5 million orders
-YoY change│+10%│+10%│+10%│+10%

Operating profit (OP) of food delivery business│7.733 billion│8.069 billion│7.411 billion│6.673 billion
-YoY change│+39%│-20%│-18%│-14%

OP/order │1.5│1.4│1.1│1.1
-YoY change│+27%│-27%│-25%│-22%

The above currencies are in RMB
------------------------------------------

Item│2025 Forecast│2026 Forecast

Revenue from food delivery business│178.827 billion│193.875 billion
-YoY change│+7%│+8%

Average daily orders of food delivery business│66 million orders│70.6 million orders
-YoY change│+10%│+7%

OP of food delivery business│29.886 billion│36.405 billion
-YoY change│-8%│+22%

OP/order│1.2│1.4
-YoY change│-16%│+14%

The above currencies are in RMB

Related NewsCiti Chops its MEITUAN-W (03690.HK) TP to $192 as Firm Determined to Win Mkt Shr w/ More Investment in Food Delivery

Source: AAStocks Financial News

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

[winston]

not vested

Increasing investment to defend market share

Meituan’s revenue reached Rmb86.6bn in 1Q25, up 18.1% yoy, in line.

Adjusted net profit was Rmb10.9bn in 1Q25, up 46.2% yoy, above our expectation, mainly due to better margin for the local commerce sector and efficient opex control.

We forecast 2Q25F revenue to grow 12.9% yoy, but adjusted net profit to decline 10.1% yoy due to an increase in subsidies for its on-demand delivery business.

Reiterate Add with a lower DCF-based TP of HK$166.

Source: CGS

chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://rfs.cgsi.com/api/download?file=bf80e8a2-5617-4c83-884e-647074eb0c55&rpt=B5A17DB9-D057-FFB6-6D23-AF91B9AB5EEC

[behappyalways]

Meituan warns local rivalry, global push to hurt profits
https://www.theedgesingapore.com/news/c ... rt-profits

[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