Meituan 3690 02 (Jun 23 - Dec 27)

[behappyalways]

Meituan warns of US$3.5 bil loss as China's food war worsens
https://www.theedgesingapore.com/news/c ... ar-worsens

[winston]

not vested

Meituan posts another quarterly loss as food delivery wars bite

Chinese food delivery leader Meituan (3690) posted a second quarterly loss in a row and fell just shy of revenue growth estimates on Thursday after a year of bruising, subsidy-fuelled competition in China's one-hour delivery space.

Meituan's revenue for the quarter ended December 31 reached 92.1 billion yuan, a 4.1 percent rise from a year ago, compared with 92.2 billion yuan expected by analysts.

Its adjusted net loss narrowed to 15.1 billion yuan from 16 billion yuan in the third quarter.

A year earlier, Meituan posted a profit of 9.8 billion yuan.

Source: The Standard

https://www.thestandard.com.hk/finance/article/327813/

[winston]

not vested

Brokerage│View

CLSA│Focus on quality growth, with slowed revenue growth but boosted earnings

Morgan Stanley│Signs of recovery increased in 1Q26

Goldman Sachs│Results broadly in line with the profit alert, with unit economy expected to improve in 1Q26

Nomura│Losses narrowed in 1Q26, but full-year visibility still limited

BofA Securities│Results in line, with core local businesses expected to trim its loss in 1Q26 due to eased subsidy pressure

Citi│4Q25 revenue in line, with core local commercial loss at RMB10 billion and new business loss deepening to RMB4.6 billion

UOB Kay Hian│Quarterly earnings missed, but management expects F&B delivery loss to halve QoQ in 1Q26, though visibility remains limited

Haitong Int'l│Core local commercial revenue slightly missed, but new business revenue mildly beat

Source: AAStocks Financial News

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

[winston]

not vested

<Research> CICC Maintains Meituan (03690.HK) Rating as 'Outperform'; Expects Marginal Competition Easing and Potential Loss Narrowing This Year

A research report by CICC indicates that Meituan (03690.HK) recorded a 4% year-on-year increase in revenue to RMB92.1 billion in the fourth quarter of last year.

Due to increased user subsidies and advertising expenses amid competition, as well as higher overseas investments, the adjusted net loss reached RMB15.1 billion.

Given the recent marginal easing of competition, CICC revised its earnings forecast for this year from a loss of RMB9.7 billion to a loss of RMB8.5 billion.

However, considering subsequent uncertainties, it lowered the 2027 earnings forecast by 8.2% to RMB27.5 billion.

Due to the company's operational efficiency advantages, CICC maintains its 'Outperform' rating for Meituan with a target price of HKD125, corresponding to a 24.6x adjusted P/E ratio and a 44% upside potential.

Source: AASTOCKS Financial News

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

[winston]

not vested

<Research>M Stanley: MEITUAN-W Profitability Roadmap Clear; Rating Overweight

Morgan Stanley forecast that MEITUAN-W (03690.HK) 's Core Local Commerce (CLC) will chart an operating loss of RMB4.3 billion in 1Q26 and is expected to achieve breakeven in 2Q26.

Among which, the instant delivery business is estimated to post an operating loss of RMB8.4 billion in 1Q26, narrowing to RMB4.4 billion in 2Q26.

This implies that the unit economics (UE) per order for the food delivery business will be negative RMB1.3 in 1Q26 and negative RMB0.6 in 2Q26, reaching breakeven in 3Q26.

After Alibaba committed to substantially narrowing losses in Quick Commerce, the visibility of MEITUAN-W's roadmap toward profitability has improved drastically.

The broker believed faster-than-expected narrowing of food delivery losses would wreak upside risk.

Morgan Stanley maintained its earnings forecasts for MEITUAN-W and continued to assume that the food delivery business will achieve UE of RMB1 per order starting from 2027.

Under its base case, the operating margin of the IHT will gradually recover from the current 25% to 30% by 2030.

The broker maintained its Overweight rating on MEITUAN-W with TP kept unchanged at HKD120.

Source: AASTOCKS Financial News

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