Dongwu Securities: Maintaining the Meituan-W (03690) “Buy” Rating and Accelerating New Business Growth

The Zhitong Finance App learned that Dongwu Securities released a research report stating that Meituan-W (03690) maintained a “buy” rating due to core business profit recovery and acceleration in new business growth in the second quarter of 2026. The company achieved operating income of 104.6 billion yuan in 26Q2, up 14.4% year on year; adjusted net profit of 2.5 billion yuan, up 69.0% year on year; gross margin increased 0.7 percentage points year on year to 33.5% year on year, and sales and marketing expenses decreased 0.6 percentage points year on year to 23.6% year on year. The bank raised its 2026-2028 non-IFRS net profit forecast from $37.7/241.7/40.29 billion to $37.9/242.4/4050 billion, with corresponding non-IFRS price-earnings ratios of 109/17/10 times, respectively.

The main views of Dongwu Securities are as follows:

Core local business: growth and profit are being restored simultaneously, and the efficiency of immediate delivery operations has improved markedly

26Q2 core local commercial revenue was 71.5 billion yuan, up 10.1% year on year; operating profit was corrected to 5.7 billion yuan, and operating profit margin reached 7.9%. In terms of immediate delivery, the company pays more attention to operational efficiency. The order and user structure continues to improve, core user stickiness has further increased, the frequency of purchases by old users has steadily increased, and the acquisition of new users has maintained healthy growth; at the same time, it continues to enrich supply, and strengthen food safety management, merchant support and rider protection. In terms of in-store wine tourism, in the face of changes in the consumer environment and increased competition in the industry, the 26Q2 business still achieved high-quality growth. The company continues to strengthen supply quality and variety of categories, enhance the exposure of local merchants and special consumption scenarios through real user content such as the new “Must-Eat List” and “Must-Play List”, and rely on AI tools such as “small groups” to improve user decision-making efficiency.

New business: Accelerated revenue growth, scale expansion combined with efficiency improvements

New business revenue in 26Q2 was 33.1 billion yuan, up 25.0% year on year. The 26Q2 grocery retail business continued to grow strongly. Xiaoxiang Supermarket expanded its business to more cities across the country, and continued to strengthen supply chain integration and product strength building, further increasing the share of private brand products in transaction amounts. In terms of overseas business, 26Q2 Keeta has maintained a strong growth momentum in various markets, and operating efficiency continues to improve. Among them, the Hong Kong market has achieved stable profits, the Middle East market's operating efficiency has improved sequentially, and the Brazilian market continues to explore São Paulo.

Risk Alerts

Competition in the industry intensified, consumption fell short of expectations, and overseas expansion fell short of expectations.