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<Research>BOCOMI Trims MEITUAN-W TP to HKD165, Upbeat on Food Delivery Operations
BOCOMI released a research report, covering MEITUAN-W (03690.HK), which logged a 18% YoY increment in revenue for 1Q25, in line with the market's and the broker's expectati...
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<Research>BOCOMI Trims MEITUAN-W TP to HKD165, Upbeat on Food Delivery Operations
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BOCOMI released a research report, covering MEITUAN-W (03690.HK)  -2.100 (-1.499%)    Short selling $1.63B; Ratio 17.427%   , which logged a 18% YoY increment in revenue for 1Q25, in line with the market's and the broker's expectations.

Competition in the food delivery market escalated in 2Q25, and Meituan was foreseen to amplify its investment in the food delivery segment to stabilize market share.

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The broker anticipated a mid to high single-digit YoY growth in food delivery order volume, with Meituan Instashopping maintaining a slightly over 30% growth in order volume.

New initiative, boosted by retail and Keeta, was expected to post a 22% revenue growth, with losses around RMB2.6 billion.

The subsidy war remarkably boosted traffic, but its sustainability remained to be proven. Meituan's food delivery business still held a leading advantage, and the broker was upbeat about its operational capabilities, with a high probability of maintaining market share.

Related NewsCMSI Chops MEITUAN-W (03690.HK) TP to $177, Keeps Rating at Overweight
BOCOMI estimated the group's profit growth in 2025 to be about 7%. Based on a target 20x P/E, the TP was lowered to HKD165, with the Buy rating maintained.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-30 16:25.)

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