$MEITUAN(03690.HK)

Meituan reported a loss in Q3 2025, with core local commerce and corporate-level operating losses expected to persist in Q4, but Q4 performance is expected to improve.

The local life services market is fiercely competitive, with established rivals like Ele.me relying on subsidies and differentiated services to attract users and merchants, while emerging platforms are leveraging new models and technologies to capture market share. However, Meituan, with years of deep cultivation, has accumulated a vast user and merchant base, a robust delivery network, and efficient operations, making it difficult for competitors to replicate in the short term. Moreover, it continuously optimizes user experience and services while strengthening partnerships to solidify its position.

The subsidies invested for competition are expected to decrease once market share is consolidated. Meituan's user base continues to expand, with transacting users exceeding 800 million over the past 12 months, and daily active users on its app growing by over 20% YoY in Q3. Monthly transacting users for food delivery hit a record high. In new businesses, grocery retail shows strong growth and improved efficiency, while Keeta's overseas expansion, though costly in the short term, holds significant potential. As the leader in food delivery, Meituan has strong resilience, focusing on local life services and deepening its presence in food delivery, retail, and other sectors, building a formidable moat. Its future development is highly promising.