The Zhitong Finance App learned that Citi released a research report stating that the target price for Meituan-W (03690) will be raised from HK$113 to HK$120. Citi raised Meituan's revenue forecast for 2026 to 2028 by 3.4% to 5.6%, respectively. The adjusted net profit forecasts for each year were 2.4 billion yuan, 20 billion yuan and 31.6 billion yuan, respectively. Meituan's second-quarter results beat expectations. Total revenue increased 14.4% year-on-year, 2.9% and 3.5% higher than the bank's and market forecasts. Profit from core local commercial operations improved significantly to RMB 5.67 billion (same below) during the period, far higher than the bank's and market expectations of $3.42 billion and $3.42 billion respectively.

Management expects the takeaway business's economic benefit per unit (UE) forecast for the third quarter to remain positive. Citi currently predicts that the profit per takeout order for the third quarter will reach 8 points. On the Keeta side, the Saudi business achieved positive unit economic benefits in July this year, and the company has only been in this market for 22 months. The bank expects Meituan's total revenue for the third quarter to rise 20% year-on-year. Core local business and new business revenue are expected to increase by 15.3% and 31.5% respectively. Core local commercial profit margins are $4.15 billion, adjusted operating profit and adjusted net profit of $2.43 billion and $2.56 billion respectively.

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