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Citi Trims MEITUAN-W's TP to HKD94; 2025 CLC Operating Loss Better Than Expected
2026-02-16 11:59:22
According to Citi's research report, MEITUAN-W (03690.HK) issued a profit warning forecasting its 2025 core local commerce (CLC) operating loss to have reached RMB6.8-7 billion, better than the broker's and the market's expectations of RMB7.3 billion and RMB7.9 billion, respectively, reflecting a slightly better-than-expected loss for 4Q25.

MEITUAN-W also recorded an IFRS net loss of around RMB23.3-24.3 billion, higher than the broker's forecast of RMB22.7 billion but broadly in line with market expectations.

Given BABA-W (09988.HK)'s target to further capture market share in food delivery and instant retail, along with the potential intensification of competition from Douyin in the in-store business, Citi believes MEITUAN-W may face more challenges before a turnaround occurs.

Citi has kept a Neutral rating on MEITUAN-W but lowered its target price from HKD115 to HKD94.
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