MEITUAN

🚨 Meituan Down 31%: A Bargain in the Making or a Profit Trap?

Meituan has had a difficult year, with its share price falling 30.8% year to date to HK$71.50 as of 9 October 2026. But does the sell-off present an opportunity or is the market pricing in deeper problems?

📉 Valuation: Looks cheap but with a catch

Meituan’s price to book ratio (P/B) has fallen to 2.20x, near a five-year low. Its price-to-sales ratio is also around 0.97x.

The current trailing P/E is negative because the company reported losses. A low valuation does not automatically mean the stock is undervalued.

💰 Profit recovery is the key

Revenue continued growing, reaching HK$398.77 billion in FY2025. However, the company swung to a net loss of HK$25.53 billion. This is mainly due to Intense competition and subsidies in food delivery and instant retail remain major challenges.

Currently, Investors need evidence that profitability can recover sustainably.

⚖️ Regulatory risks add uncertainty

Beijing has opened an investigation into Meituan and three other travel platforms over suspected unfair competition and booking practices.

Currently, no news on the findings or penalties had been announced. Possible outcomes range from conduct changes to financial penalties or a more serious escalation.

🔍 What should investors watch?

The crucial questions are whether competitive spending eases, profits recover and the investigation remains limited in scope.

Meituan looks historically inexpensive on certain valuation measures but its future depends on earnings recovery.☺️ ( Looking at the weekly chart, Higher timeframe, it appears Meituan may have reached its bottom.)

Please refer to the infographic for the valuation figures, peer comparisons and three regulatory scenarios.

What do you think? Is this a potential turnaround story or a value trap?🤔

Not financially investment advice. Please do your own due diligence.

$MEITUAN(03690.HK)

New stocks and HK stocks are all in the red 😇

Hong Kong stocks are in a sea of red, dizzying 😵

$MEITUAN(03690.HK)$BABA-W(09988.HK)

🚨 China Tech Probe: What It Means for Alibaba & Meituan

Beijing regulators have formally opened investigations into major online travel platforms under anti-unfair competition laws.

This news landed over the weekend and will test market sentiment when trading opens tomorrow Monday.

Here is how it affects both companies:

🔹 Alibaba : Limited Impact

• What is targeted: Fliggy, its travel platform. This sits in the “All Others” segment that makes up only 10% of total revenue.

• Potential cost: A fine on a similar scale would equal about 1.9% of one quarter’s revenue.

• Financial strength: Strong quarterly net profit of $1.55 billion gives Alibaba a solid buffer to absorb the cost.

🔹 Meituan : Higher Exposure

• What is targeted- Hotels & Travel

Part of its Core Local Commerce business that accounts for 68.4% of revenue.

• Potential cost:

A similar fine would equal around 5% of quarterly revenue, adding to its 1st Half net loss of HKD 5.34 billion.

• Longer risk:

New rules around commission transparency and pricing limits could keep pressuring margins on this key profit driver.

💡 Bottom Line:

This probe is narrower than the broad platform crackdowns back in 2021, so legal exposure is lighter overall.

But Meituan is far more financially sensitive to this news than Alibaba as markets open.

📊 See the infographic above for the full picture!

Not financial advice. Please do your own DD.

Source : China investigates Meituan and Alibaba units for suspected violations of competition laws- Reuters (19.09.2026)

The Fed has decided to increase the interest rate after all. For the time being, the risk of USD debasement trade will retreat. The next question is how many more rate hikes are on the horizon?

Singapore stocks took a breather as Bank shares and even reits rose slightly after the official rate hike by the FED last night. I think Reits will start to stabilise for some time, but the worst is yet to be over as officials still want a consensus 1 more rate hike by this year.

So the FED does indeed raise its interest rate by 25basis points, looks like I was wrong about Warsh taking the risky stance of maintaining position. However, as expected, Trump took to social media to continue to pile pressure and express his desire for lower interest rate; this is the first time Warsh and Co took a decisive decision, let's see if they would continue Powell's legacy of maintaining independence or eventually succumbing to Trump's political will.

One rate hke decided unanimously is highly anticipated by the market. Dot plot with 16 out of 18, expectations of further monetary tightening, sending a very hawkish signal. Revaluation of AI companies and rate sensitive sectors like property and bond markets may take the hit. So sit tight, buckle up your safety belt, and bumpy ride ahead.

Personally, I didn’t thought that the stocks fell that much (yet) after the rates announcement. I guess most people are bracing for further hikes too