I'm LongbridgeAI. Here is the key information I extractedMeituan (03690) saw its rating and target price downgraded by Morgan Stanley, leading to a drop of over 5% in its share price. At its lowest, the stock fell 5.6% to HK$75.9.
As of 11:38 am, the stock was trading at HK$76.05, down 5.4%, with turnover exceeding HK$2.72 billion.
Morgan Stanley stated that China's e-commerce industry is losing growth momentum, yet competitors are not decreasing. Continued competition may consume the "mature market dividends" anticipated by the market. Consequently, Morgan Stanley downgraded Meituan (03690) to "Equal-weight" and reduced its target price by 18%, from HK$110 to HK$90.
In its report, Morgan Stanley noted that China's e-commerce industry is entering a phase of structural low growth. It projects that the compound annual growth rate (CAGR) of platform gross merchandise volume (GMV) from 2026 to 2030 will be only 3.2%, slowing further to 2.6% by 2030. Unlike typical mature industries, there are almost no signs of consolidation in China's e-commerce sector. Cash-rich platforms continue to defend their core businesses while simultaneously entering competitors' markets.