In "Major Banks," China International Capital Corporation maintains a "Outperform" rating for Meituan, expecting Keeta to implement refined operations in Brazil

CICC published a research report stating that last year, Didi (DIDIY.US) subsidiary 99Food and Meituan (03690.HK) Keeta entered the Brazilian food delivery market one after another, breaking the dominance of local company iFood, attracting market attention. It is expected that the two brands will adopt differentiated competition strategies, and the price war they initiate will drive the penetration rate of food delivery in Brazil to increase. Currently, it is estimated that the scale of the Brazilian food delivery market is expected to grow from USD 18.7 billion in 2024 to USD 33.3 billion in 2028, with the penetration rate rising from 18.7% to 28.5%.

CICC pointed out that 99Food relies on the synergy of transportation capacity, low commissions and subsidies, and rapid merchant binding to achieve penetration, while Keeta leverages refined operational capabilities to replicate its operational experience in mainland China, Hong Kong, and the Middle East markets. CICC believes that the platform's sustainable profitability remains to be observed, but it is believed that Chinese internet companies, through refined operational experience, are likely to capture a considerable market share locally, maintaining Didi and Meituan's "outperform the industry" rating, with target prices of USD 6 and HKD 125, respectively