G Sachs Reduces 2026/2027 Earnings Projections for BABA-W (09988.HK), Maintains Buy Rating
BABA-W Performance and Outlook: BABA-W's cloud business and capital expenditures exceeded expectations for Q1 FY2025, leading Goldman Sachs to maintain a Buy rating and a positive outlook on AI-driven growth.
Market Share Projections: Goldman Sachs anticipates BABA-W will stabilize its market share in food delivery and instant retail at 40%, with competitors Meituan and JD holding 50% and 10%, respectively.
Profit Forecast Adjustments: The broker has lowered its FY2026-2027 adjusted net profit forecasts by 9% and 4%, while also reducing EBITA forecasts by 11% and 1%, but raised FY2028 earnings and EBITA forecasts by 2%.
Target Price Increase: Goldman Sachs has increased its target prices for BABA-W's H-shares and US stock to $158 and $163, respectively, reflecting optimism about future growth from investments in e-commerce and cloud services.
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Fitch Anticipates Limited Financial Effects from MEITUAN-W's Purchase of Dingdong; Price Competition Likely to Diminish This Year
Acquisition Announcement: Meituan-W plans to acquire Dingdong Fresh Holding Limited to strengthen its position in the instant shopping market, with Fitch Ratings indicating that this will have a neutral impact on Meituan's credit profile.
Financial Overview: Dingdong's EBITDA is projected at RMB390 million for the 12 months ending September 2025, which is less than 5% of Meituan's expected EBITDA for 2026, highlighting the relatively small scale of the acquisition's financial impact.
MEITUAN-W Optimizes Over 10 Marketing Campaigns Last Year, Resulting in RMB1.62B+ Savings for Platform Merchants
Marketing Campaign Adjustments: MEITUAN-W has simplified and canceled over ten food delivery marketing campaigns, including major activities like online vouchers and offline subsidies, to improve efficiency.
Cost Reduction for Merchants: These changes have positively impacted over 2 million food delivery merchants, leading to a reduction in ineffective marketing expenditures by more than RMB1.62 billion.
Short Selling Activity Reaches $47.7B, Representing 22.1% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $47.7 billion, accounting for 22.1% of the eligible securities turnover, slightly down from 23% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W, with CSOP HS TECH leading at $7.79 billion and a short selling ratio of 66.7%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decrease of 0.947%, with a significant short selling turnover of $7.79 billion and a high short selling ratio of 66.7%.
Other Notable Stocks: TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W also showed notable short selling activity, with TENCENT at $2.97 billion and a ratio of 15.2%, while MEITUAN-W had a turnover of $961.98 million and a ratio of 26.6%.
BofAS Maintains Neutral Rating on MEITUAN-W (03690.HK) Due to Minimal Financial Effects from Dingdong CN Business Acquisition
Acquisition Announcement: MEITUAN-W has signed an agreement to acquire the China business of Dingdong for an initial consideration of US$717 million, which will make Dingdong an indirect wholly-owned subsidiary of MEITUAN-W.
Financial Impact: The acquisition represents approximately 5% of MEITUAN-W's net cash of RMB96 billion, and analysts expect limited impact on the company's balance sheet, with a projected narrowing of adjusted net loss from RMB19 billion in 2025 to about RMB5 billion in 2026.
Citi Research: Dingdong's Acquisition Boosts MEITUAN-W's Standing in Fresh Retail Market, Yet Competition Remains Fierce
Acquisition Announcement: MEITUAN-W has announced the acquisition of Dingdong's China business for an initial consideration of USD 717 million, aiming to enhance its warehouse coverage and supply chain capabilities in the fresh produce sector.
Strategic Importance: Citi views this acquisition as strategically significant for MEITUAN-W, as it seeks to diversify its offerings from takeout and dine-in to home cooking, particularly in key regions like East China.
Market Challenges: Despite the potential benefits, MEITUAN-W faces a fragmented and competitive fresh and grocery market, along with challenges in its core local business and the need for substantial investment for overseas expansion.
Analyst Rating: Citi has set a target price of HKD 115 for MEITUAN-W, maintaining a Neutral/High Risk rating on the stock.
Nomura: MEITUAN-W (03690.HK) Expected to Acquire Dingdong's CN Business at 58% Premium; Neutral Rating Issued
MEITUAN-W Acquisition: MEITUAN-W has finalized an agreement to acquire Dingdong's entire business in China, focusing on fresh grocery delivery, while Dingdong will retain only its overseas operations.
Market Analysis: Nomura has rated MEITUAN-W as Neutral with a target price of $107, noting that the acquisition price of $717 million reflects a 58% premium, likely due to competitive bidding from JD.com and the strategic value of the assets.
Fitch Anticipates Limited Financial Effects from MEITUAN-W's Purchase of Dingdong; Price Competition Likely to Diminish This Year
Acquisition Announcement: Meituan-W plans to acquire Dingdong Fresh Holding Limited to strengthen its position in the instant shopping market, with Fitch Ratings indicating that this will have a neutral impact on Meituan's credit profile.
Financial Overview: Dingdong's EBITDA is projected at RMB390 million for the 12 months ending September 2025, which is less than 5% of Meituan's expected EBITDA for 2026, highlighting the relatively small scale of the acquisition's financial impact.
MEITUAN-W Optimizes Over 10 Marketing Campaigns Last Year, Resulting in RMB1.62B+ Savings for Platform Merchants
Marketing Campaign Adjustments: MEITUAN-W has simplified and canceled over ten food delivery marketing campaigns, including major activities like online vouchers and offline subsidies, to improve efficiency.
Cost Reduction for Merchants: These changes have positively impacted over 2 million food delivery merchants, leading to a reduction in ineffective marketing expenditures by more than RMB1.62 billion.
Short Selling Activity Reaches $47.7B, Representing 22.1% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $47.7 billion, accounting for 22.1% of the eligible securities turnover, slightly down from 23% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include CSOP HS TECH, TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W, with CSOP HS TECH leading at $7.79 billion and a short selling ratio of 66.7%.
CSOP HS TECH Performance: CSOP HS TECH (03033.HK) experienced a decrease of 0.947%, with a significant short selling turnover of $7.79 billion and a high short selling ratio of 66.7%.
Other Notable Stocks: TENCENT, BABA-W, XIAOMI-W, and MEITUAN-W also showed notable short selling activity, with TENCENT at $2.97 billion and a ratio of 15.2%, while MEITUAN-W had a turnover of $961.98 million and a ratio of 26.6%.
BofAS Maintains Neutral Rating on MEITUAN-W (03690.HK) Due to Minimal Financial Effects from Dingdong CN Business Acquisition
Acquisition Announcement: MEITUAN-W has signed an agreement to acquire the China business of Dingdong for an initial consideration of US$717 million, which will make Dingdong an indirect wholly-owned subsidiary of MEITUAN-W.
Financial Impact: The acquisition represents approximately 5% of MEITUAN-W's net cash of RMB96 billion, and analysts expect limited impact on the company's balance sheet, with a projected narrowing of adjusted net loss from RMB19 billion in 2025 to about RMB5 billion in 2026.
Citi Research: Dingdong's Acquisition Boosts MEITUAN-W's Standing in Fresh Retail Market, Yet Competition Remains Fierce
Acquisition Announcement: MEITUAN-W has announced the acquisition of Dingdong's China business for an initial consideration of USD 717 million, aiming to enhance its warehouse coverage and supply chain capabilities in the fresh produce sector.
Strategic Importance: Citi views this acquisition as strategically significant for MEITUAN-W, as it seeks to diversify its offerings from takeout and dine-in to home cooking, particularly in key regions like East China.
Market Challenges: Despite the potential benefits, MEITUAN-W faces a fragmented and competitive fresh and grocery market, along with challenges in its core local business and the need for substantial investment for overseas expansion.
Analyst Rating: Citi has set a target price of HKD 115 for MEITUAN-W, maintaining a Neutral/High Risk rating on the stock.
Nomura: MEITUAN-W (03690.HK) Expected to Acquire Dingdong's CN Business at 58% Premium; Neutral Rating Issued
MEITUAN-W Acquisition: MEITUAN-W has finalized an agreement to acquire Dingdong's entire business in China, focusing on fresh grocery delivery, while Dingdong will retain only its overseas operations.
Market Analysis: Nomura has rated MEITUAN-W as Neutral with a target price of $107, noting that the acquisition price of $717 million reflects a 58% premium, likely due to competitive bidding from JD.com and the strategic value of the assets.
