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BofAS: MEITUAN-W (03690.HK) Rating Kept at Neutral on Limited Financial Impact from Acquisition of Dingdong CN Biz
2026-02-06 12:35:55
MEITUAN-W (03690.HK) recently announced the signing of an equity acquisition agreement to acquire the China business of Dingdong (DDL.US) for an initial consideration of US$717 million, BofA Securities issued a research report saying.

Upon completion of the transaction, the acquired entity will become an indirect wholly-owned subsidiary of MEITUAN-W, and its financial results will be fully consolidated into MEITUAN-W's financial statements.

As of 3Q25, MEITUAN-W held RMB96 billion in net cash. The cash consideration of US$717 million accounts for approx. 5% of its net cash.

Considering that the broker expected MEITUAN-W's 2026 adjusted net loss to significantly narrow from RMB19 billion in 2025 to about RMB5 billion in 2026, BofA Securities believed that the transaction has limited impact on MEITUAN-W's balance sheet.

Therefore, the broker kept rating at Neutral for MEITUAN-W, with a target price of $106.
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