MEITUAN-W (03690.HK)  +6.500 (+4.947%)    Short selling $1.22B; Ratio 20.856%   's 1Q25 results beat expectations, CCBI released a research report saying. In an earnings call, management promised to take all necessary measures to defend its market share.

The broker expected subsidies and higher sales & marketing expenses to affect Meituan Waimai's revenue and average profit per order in the near term, but believed that a sustained price war is unlikely.

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CCBI lowered its 2025-2027 revenue forecasts for MEITUAN-W by 3%/ 4%/ 3%, and earnings forecasts by 28%/ 31%/ 22% respectively, in light of higher subsidies that eat into revenue, enhanced investment in Keeta in the Middle East and business expansion in Brazil. The broker slashed its target price to $157.4 from $199.

CCBI remained constructive on MEITUAN-W's leadership position in the local services sector, despite challenges in the near term. In time, competition will become more rational and its overseas business will start to bear fruit.

Therefore, the broker kept rating at Outperform on MEITUAN-W, although a more intense competitive environment will affect its share price performance in the near term.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-29 12:25.)

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