CMBI maintained a Buy rating for MEITUAN-W due to better-than-expected 1Q26 results, with revenue growth of 5.6% YoY and narrower losses in core local commerce (CLC). The report indicates that competition in the food delivery sector is stabilizing, leading to improved profitability forecasts. Although the revenue forecast was slightly adjusted downwards, the broker significantly reduced its loss forecasts, reflecting a positive recovery in food delivery profitability.
