In "Major Banks," China International Capital Corporation maintains a "Outperform" rating for Meituan, expecting competition to ease and losses to narrow this year

The China International Capital Corporation (CICC) research report pointed out that Meituan (03690.HK) had a revenue increase of 4% year-on-year in the fourth quarter of last year, reaching RMB 92.1 billion; affected by increased user subsidies and advertising spending amid competition, as well as increased overseas investments, the adjusted net loss reached RMB 15.1 billion.

Due to the recent easing of competitive margins, CICC adjusted this year's profit forecast from a loss of RMB 9.7 billion to a loss of RMB 8.5 billion, but considering subsequent uncertainties, it lowered the profit forecast for 2027 by 8.2% to RMB 27.5 billion; due to the company's operational efficiency advantages, CICC maintains Meituan's "outperform the industry" rating and target price of HKD 125, corresponding to an adjusted price-to-earnings ratio of 24.6 times for 2027 and a 44% upside potential