Hong Kong Stock Market Update: Meituan surged over 5% again, with a cumulative increase of over 20% this month. The strong consumer spending during the Spring Festival is expected to support the company's performance.

In the morning session, MEITUAN rose by over 5%, reaching a 5.04% increase to HKD 77.1, with a trading volume of HKD 10.67 billion. According to CICC, during the Spring Festival holiday, the daily consumption on MEITUAN's platform increased by 36% compared to last year, with the growth rate in lower-tier cities doubling that of first-tier cities. Nighttime consumption accounted for 53% (a 48 percentage point increase YoY), and out-of-town dining orders grew faster than the national average. It is estimated that MEITUAN's core business revenue will increase by around 23-24% YoY in the first quarter of 2024, compared to Visible Alpha's consensus forecast of 20.7%. Of note, on February 2nd, MEITUAN CEO Wang Xing announced a new organizational restructuring in an internal email. The email revealed that MEITUAN has integrated various core local business-related operations and further prioritized technology and international business. The most significant change in this adjustment is the synergistic development of in-store and delivery services.