--- title: "Understanding the Market | Meituan (W) Rises Over 5% as Q1 Earnings Disclosure Approaches, Morgan Stanley Optimistic About Company's Profitability Roadmap" type: "News" locale: "en" url: "https://longbridge.com/en/news/288203868.md" description: "Meituan-W's stock price rose over 5%, reaching HKD 77.3. Due to the imminent disclosure of first-quarter results, Morgan Stanley maintained an overweight rating and a target price of HKD 120, believing that Alibaba's narrowing of instant retail losses makes Meituan's profit roadmap clearer. Morgan Stanley expects Q1 in-store hotel and travel business GTV and revenue to increase by 10% and 9%, respectively, with an operating profit margin of 25%; the overseas business KeeTa has improved unit economics in Saudi Arabia, and the Hong Kong market remains profitable" datetime: "2026-06-01T02:45:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288203868.md) - [en](https://longbridge.com/en/news/288203868.md) - [zh-HK](https://longbridge.com/zh-HK/news/288203868.md) --- # Understanding the Market | Meituan (W) Rises Over 5% as Q1 Earnings Disclosure Approaches, Morgan Stanley Optimistic About Company's Profitability Roadmap According to Zhitong Finance APP, Meituan-W (03690) surged over 5%, and as of the time of writing, it rose by 5.24% to HKD 77.3, with a transaction volume of HKD 1.572 billion. In terms of news, Meituan plans to hold a board meeting on June 1 to consider and approve the unaudited financial performance for the first quarter of 2026. Morgan Stanley's recent research report pointed out that it maintains an "overweight" rating on Meituan, with a target price unchanged at HKD 120. The bank maintains its earnings forecast for Meituan and continues to assume that the unit economic benefit of the takeaway business will reach RMB 1 starting in 2027, while under the base case, the operating profit margin for in-store, hotel, and tourism businesses will gradually recover from the current 25% to an estimated 30% by 2030. Morgan Stanley noted that after Alibaba committed to significantly narrowing its instant retail losses, the roadmap for Meituan's profitability has become significantly clearer. In terms of business segments, Morgan Stanley expects Meituan's total transaction volume (GTV) and revenue for the first quarter's in-store, hotel, and tourism (IHT) business to grow by 10% and 9% year-on-year, respectively, with operating profit remaining roughly flat quarter-on-quarter at HKD 4.1 billion, and an operating profit margin of 25%. In terms of new business, its overseas business KeeTa will focus this year on consolidating existing markets, with unit economic benefits in Saudi Arabia continuing to improve, and the Hong Kong market remaining profitable ### Related Stocks - [03690.HK](https://longbridge.com/en/quote/03690.HK.md) - [MPNGY.US](https://longbridge.com/en/quote/MPNGY.US.md) - [BABA.US](https://longbridge.com/en/quote/BABA.US.md) - [09988.HK](https://longbridge.com/en/quote/09988.HK.md) - [513770.CN](https://longbridge.com/en/quote/513770.CN.md) - [BABX.US](https://longbridge.com/en/quote/BABX.US.md) - [KBAB.US](https://longbridge.com/en/quote/KBAB.US.md) - [PGJ.US](https://longbridge.com/en/quote/PGJ.US.md) - [YINN.US](https://longbridge.com/en/quote/YINN.US.md) - [513040.CN](https://longbridge.com/en/quote/513040.CN.md) - [KWEB.US](https://longbridge.com/en/quote/KWEB.US.md) - [516530.CN](https://longbridge.com/en/quote/516530.CN.md) - [MS.US](https://longbridge.com/en/quote/MS.US.md) - [83690.HK](https://longbridge.com/en/quote/83690.HK.md) - [HMTD.SG](https://longbridge.com/en/quote/HMTD.SG.md) - [MS-O.US](https://longbridge.com/en/quote/MS-O.US.md) - [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md) - [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md) - [MS-I.US](https://longbridge.com/en/quote/MS-I.US.md) - [MS-L.US](https://longbridge.com/en/quote/MS-L.US.md) - [MS-P.US](https://longbridge.com/en/quote/MS-P.US.md) - [MS-A.US](https://longbridge.com/en/quote/MS-A.US.md) - [MS-F.US](https://longbridge.com/en/quote/MS-F.US.md) - [MS-K.US](https://longbridge.com/en/quote/MS-K.US.md) - [89988.HK](https://longbridge.com/en/quote/89988.HK.md) - [HBBD.SG](https://longbridge.com/en/quote/HBBD.SG.md) ## Related News & Research - [Meituan Returns to Loss in Q1 2026 as Retail-Focused Strategy Reshapes Revenue Mix](https://longbridge.com/en/news/288243919.md) - [China's Meituan Opens Errand Ordering System to Multiple AI Assistants](https://longbridge.com/en/news/287715884.md) - [FACTBOX-From Saudi Aramco to Alibaba: World's biggest IPOs](https://longbridge.com/en/news/288308317.md) - [Meituan posts another quarterly loss, though food delivery wars are beginning to abate](https://longbridge.com/en/news/288242106.md) - [Chinese Robotics Startup Tianji Bags USD147.4 Million From GL Ventures, Meituan](https://longbridge.com/en/news/287528425.md)