Benchmark Downgrades Meituan to Hold, Removes HK$145 Price Target
Benchmark downgraded Meituan to Hold from Buy and removed the firm's prior HK$145 price target on shares in anticipation of a prolonged period of heightened competition across food delivery, instant commerce, and local services. Such conditions will prolong revenue headwinds and necessitate sustained promotional and ecosystem investments, the analyst tells investors.
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Short Selling Activity Reaches $19.2B, Representing 28.2% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $19.2 billion at midday, accounting for 28.2% of the turnover of eligible securities, an increase from 20.3% on the previous trading day.
Top Short Selling Shares: The top five shares with the highest short selling amounts include HSCEI ETF, TRACKER FUND, CSOP HS TECH, BABA-W, and MEITUAN-W, with short selling ratios ranging from 24.3% to 55.3%.
HSCEI ETF Performance: The HSCEI ETF had the highest short selling amount at $2.4 billion, with a short selling ratio of 47.9%.
CSOP HS TECH Highlights: CSOP HS TECH recorded a short selling turnover of $1.72 billion, leading with the highest short selling ratio of 55.3% among the top five shares.
Citi Lowers MEITUAN-W's Target Price to HKD94; 2025 CLC Operating Loss Surpasses Expectations
Profit Warning: MEITUAN-W forecasts a 2025 core local commerce operating loss of RMB6.8-7 billion, which is better than market expectations of RMB7.3 billion and RMB7.9 billion.
Net Loss: The company reported an IFRS net loss of approximately RMB23.3-24.3 billion, slightly exceeding broker forecasts but aligning with market expectations.
Market Challenges: Citi anticipates that MEITUAN-W will face increased competition, particularly from BABA-W and Douyin, which may hinder its recovery.
Rating Adjustment: Citi maintains a Neutral rating on MEITUAN-W while reducing its target price from HKD115 to HKD94.
<M Stanley Research>: MEITUAN-W Profit Warning Expected; 2025 Core Local Business Operating Loss Slightly Exceeds Projections
Profit Warning: MEITUAN-W issued a profit warning for FY25, expecting an IFRS net profit loss between RMB23.3-24.3 billion, with core local business losses projected at RMB6.8-7 billion due to increased competition.
Market Expectations: The profit warning aligns with market expectations of a loss around RMB23 billion, while the core business loss was slightly better than anticipated.
Investment Strategy: The company is increasing investments to compete against rivals like Alibaba, which is aggressively expanding in the local lifestyle sectors.
Stock Rating: Morgan Stanley maintains an Overweight rating for MEITUAN-W with a target price of HKD120, despite short-term price struggles anticipated by other analysts.
Sunmi, a BIOT Solutions Firm, Aims for Hong Kong IPO with Alibaba and Meituan as Shareholders
Company Listing: Shanghai Sunmi Technology, a Mainland Chinese BIoT solutions provider, has successfully cleared the listing hearing for the Hong Kong Stock Exchange.
Product Offerings: The company specializes in smart devices and the BIoTPaaS platform, with significant backing from major shareholders like Ant Group.
Market Position: Sunmi is recognized as the world's largest Android-based BIoT solutions provider, holding over 10% market share and serving more than 70% of the top 50 global food and beverage companies.
Financial Performance: The company reported net profits of RMB160 million, RMB101 million, and RMB181 million for the years 2022 to 2024.
Nomura Maintains Neutral Rating on MEITUAN-W, Anticipates Short-term Challenges for Share Price
Profit Warning: MEITUAN-W has issued a profit warning, predicting a net loss of RMB23.3-24.3 billion for FY25, with a projected loss of RMB15-16 billion for 4Q25, which is worse than market expectations.
Market Performance: The company's stock has significantly underperformed, declining 51.7% over the past year, while the HSI rose by 17.5% during the same period.
Competitive Challenges: Intensified competition in the local life services sector and investments in overseas markets are cited as primary reasons for the expected losses.
Analyst Rating: Nomura has assigned a Neutral rating to MEITUAN-W, setting a target price of HKD107, indicating that the stock price may struggle to recover in the short term.
MEITUAN-W Declines Slightly Under 1% Following 2025 Loss Forecast of Up to RMB 24.3B, Anticipates Continued Losses in Q1 2026
Stock Performance: Meituan-W (03690.HK) opened 0.6% lower at HK$81.65, with significant short selling amounting to $2.11 billion and a ratio of 25.842%.
Profit Warning: The company issued a profit warning, anticipating a loss of RMB23.3-24.3 billion for 2025, a stark contrast to the previous year's profit of RMB35.808 billion.
Operational Challenges: The expected loss is attributed to a decline in the Core Local Commerce segment, projecting an operating loss of approximately RMB6.8-7 billion for FY2025, alongside increased investments in overseas operations.
Financial Stability: Despite the projected losses, Meituan emphasized that its operations remain stable and it has sufficient cash reserves to support ongoing business development.
Short Selling Activity Reaches $19.2B, Representing 28.2% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $19.2 billion at midday, accounting for 28.2% of the turnover of eligible securities, an increase from 20.3% on the previous trading day.
Top Short Selling Shares: The top five shares with the highest short selling amounts include HSCEI ETF, TRACKER FUND, CSOP HS TECH, BABA-W, and MEITUAN-W, with short selling ratios ranging from 24.3% to 55.3%.
HSCEI ETF Performance: The HSCEI ETF had the highest short selling amount at $2.4 billion, with a short selling ratio of 47.9%.
CSOP HS TECH Highlights: CSOP HS TECH recorded a short selling turnover of $1.72 billion, leading with the highest short selling ratio of 55.3% among the top five shares.
Citi Lowers MEITUAN-W's Target Price to HKD94; 2025 CLC Operating Loss Surpasses Expectations
Profit Warning: MEITUAN-W forecasts a 2025 core local commerce operating loss of RMB6.8-7 billion, which is better than market expectations of RMB7.3 billion and RMB7.9 billion.
Net Loss: The company reported an IFRS net loss of approximately RMB23.3-24.3 billion, slightly exceeding broker forecasts but aligning with market expectations.
Market Challenges: Citi anticipates that MEITUAN-W will face increased competition, particularly from BABA-W and Douyin, which may hinder its recovery.
Rating Adjustment: Citi maintains a Neutral rating on MEITUAN-W while reducing its target price from HKD115 to HKD94.
<M Stanley Research>: MEITUAN-W Profit Warning Expected; 2025 Core Local Business Operating Loss Slightly Exceeds Projections
Profit Warning: MEITUAN-W issued a profit warning for FY25, expecting an IFRS net profit loss between RMB23.3-24.3 billion, with core local business losses projected at RMB6.8-7 billion due to increased competition.
Market Expectations: The profit warning aligns with market expectations of a loss around RMB23 billion, while the core business loss was slightly better than anticipated.
Investment Strategy: The company is increasing investments to compete against rivals like Alibaba, which is aggressively expanding in the local lifestyle sectors.
Stock Rating: Morgan Stanley maintains an Overweight rating for MEITUAN-W with a target price of HKD120, despite short-term price struggles anticipated by other analysts.
Sunmi, a BIOT Solutions Firm, Aims for Hong Kong IPO with Alibaba and Meituan as Shareholders
Company Listing: Shanghai Sunmi Technology, a Mainland Chinese BIoT solutions provider, has successfully cleared the listing hearing for the Hong Kong Stock Exchange.
Product Offerings: The company specializes in smart devices and the BIoTPaaS platform, with significant backing from major shareholders like Ant Group.
Market Position: Sunmi is recognized as the world's largest Android-based BIoT solutions provider, holding over 10% market share and serving more than 70% of the top 50 global food and beverage companies.
Financial Performance: The company reported net profits of RMB160 million, RMB101 million, and RMB181 million for the years 2022 to 2024.
Nomura Maintains Neutral Rating on MEITUAN-W, Anticipates Short-term Challenges for Share Price
Profit Warning: MEITUAN-W has issued a profit warning, predicting a net loss of RMB23.3-24.3 billion for FY25, with a projected loss of RMB15-16 billion for 4Q25, which is worse than market expectations.
Market Performance: The company's stock has significantly underperformed, declining 51.7% over the past year, while the HSI rose by 17.5% during the same period.
Competitive Challenges: Intensified competition in the local life services sector and investments in overseas markets are cited as primary reasons for the expected losses.
Analyst Rating: Nomura has assigned a Neutral rating to MEITUAN-W, setting a target price of HKD107, indicating that the stock price may struggle to recover in the short term.
MEITUAN-W Declines Slightly Under 1% Following 2025 Loss Forecast of Up to RMB 24.3B, Anticipates Continued Losses in Q1 2026
Stock Performance: Meituan-W (03690.HK) opened 0.6% lower at HK$81.65, with significant short selling amounting to $2.11 billion and a ratio of 25.842%.
Profit Warning: The company issued a profit warning, anticipating a loss of RMB23.3-24.3 billion for 2025, a stark contrast to the previous year's profit of RMB35.808 billion.
Operational Challenges: The expected loss is attributed to a decline in the Core Local Commerce segment, projecting an operating loss of approximately RMB6.8-7 billion for FY2025, alongside increased investments in overseas operations.
Financial Stability: Despite the projected losses, Meituan emphasized that its operations remain stable and it has sufficient cash reserves to support ongoing business development.
