Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
S&P: Risks to MEITUAN-W Manifesting EBITDA Recovery Mounting
Recommend 53 Positive 68 Negative 38 |
||||
|
||||
|
S&P Global stated that the risks MEITUAN-W (03690.HK) faces in manifesting EBITDA recovery are mounting. This is attributable to the company's rising costs to maintain its market leadership in local commerce. As a result, the recovery of margins may be slower than the rating agency’s estimation. S&P Global gave Meituan an A- credit rating with a Stable outlook. The rating agency mentioned that Meituan's food delivery may post an EBITDA margin in 2026 lower than its initial forecast. Even as subsidies taper off starting next quarter, this Chinese company may invest more in marketing to attract member loyalty and maintain rider service quality. With the reduction of subsidies, the company is likely to regain market share in food delivery. However, the narrowing cost gap in delivery between Meituan and its main competitor BABA-W (09988.HK) raises Meituan's expenses in maintaining brand recognition and consumer awareness. AASTOCKS Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
