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<Research>HSBC Research Slashes MEITUAN-W (03690.HK) TP to $125, Expects Instant Retail Competition to Persist
Recommend 21 Positive 29 Negative 28 |
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MEITUAN-W (03690.HK) faced more intensified competition in its food delivery and on-demand retail businesses than expected, leading to a larger-than-anticipated profit decline in 2Q25, HSBC Global Research noted. Despite increased subsidies, the broker estimated the Group's on-demand retail order growth to lag behind industry level as it prioritized retaining high-quality orders and users. HSBC Global Research lowered its 2025-2027 revenue forecasts for MEITUAN-W by 5-6% to reflect the heavier subsidy burden. The broker significantly lowered its profit forecasts due to rising subsidies, meanwhile forecasting that losses in the food delivery business will bottom out in 3Q25. However, competition in the on-demand retail sector is expected to persist amid the potential emergence of new competitors. Therefore, HSBC Global Research slashed its target price for MEITUAN-W by 21.9% to $125 from $160, with rating kept at Buy. AAStocks Financial News Website: www.aastocks.com |
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