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<Research>China Renaissance Lowers MEITUAN-W TP to HKD195, Reiterates Buy Rating
China Renaissance's research report wrote that MEITUAN-W (03690.HK) faced intensified industry competition in 2Q25. As more peers enter the market, Meituan's commitment to ...
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<Research>China Renaissance Lowers MEITUAN-W TP to HKD195, Reiterates Buy Rating
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China Renaissance's research report wrote that MEITUAN-W (03690.HK)  +7.100 (+5.403%)    Short selling $1.22B; Ratio 20.856%   faced intensified industry competition in 2Q25. As more peers enter the market, Meituan's commitment to increased investment to maintain competitiveness may lead to short-term fluctuations in revenue and unit profit performance.

The broker lowered MEITUAN-W’s target price from HKD240 to HKD195, reiterating a Buy rating. Risks included prolonged macroeconomic weakness, stricter regulations, and slower-than-expected narrowing losses of new initiatives.

Related NewsCLSA Slashes MEITUAN-W's TP to HKD185; Delivery Competition & Global Expansion Heap Pressure on Profit Margins
Meituan's losses of new initiatives in 1Q25 was RMB2.3 billion, 3% better than expected, said the broker. Among these, Meituan Select's loss was estimated at RMB1.7 billion, remaining flat MoM, with the remaining losses majorly related to overseas expansion.

Looking ahead to 2025, the broker expected Meituan Select's losses to remain flat, but the scale of overseas investment will further expand, predicting an annual operating loss of RMB2.6 billion for this segment.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-29 12:25.)

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