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<Research>CMSI Cuts MEITUAN-W TP to $139, Expects Profit Recovery Next Yr
Recommend 15 Positive 21 Negative 7 |
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CMSI released a research report, covering MEITUAN-W (03690.HK), which saw a 12% YoY increase in total revenue in 2Q25, at RMB91.8 billion, slightly below consensus by 2%. Given the escalated competition and heightened investments, the broker lately forecast Meituan's core local commerce (CLC) revenue in 3Q25 to remain flat YoY: instant delivery revenue to inch down on the decrease in average order value (AOV), but order growth to further accelerate; and hotel and travel (IHT) revenue to maintain low double-digit YoY growth. The broker trimmed its forecast for Meituan's FY2025-27 due to higher-than-expected investments in the food delivery business, reducing the target price from HKD156 to HKD139. CMSI assumed that the additional investments Meituan made to defend its market share were priced in, presenting an attractive risk-reward. The broker foresaw profit to recover in 2026 as competition becomes more rational. The rating was Overweight. AASTOCKS Financial News Website: www.aastocks.com |
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