Meituan 3690

[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