UBS: Target price of Yomeitan-W (03690) “buy” rating raised to HK$132

The Zhitong Finance App learned that UBS released a research report saying that the current price of Meituan-W (03690) corresponds to 10 times the projected price-earnings ratio in 2028, which does not fully reflect its growing market leadership position in rapid commerce and in-store business. The bank expects Meituan to experience several years of profit recovery. It is expected that core local commercial (CLC) operating profit will increase from RMB 13 billion in 2026 (same below) to RMB 55 billion, the level before competition intensified in 2028; raise the target price from HK$128 to HK$132, with a rating of “buy”.

The bank believes that the mainland's rapid commerce and in-store market competition is nearing a turning point, shifting from subsidy-led share competition to operational efficiency. The bank expects the transformation to be increasingly beneficial to Meituan's deep moat. With its efficient “user-delivery-merchant” flywheel model, the sharp recovery in profits in the second quarter of this year has been proven. Meituan is also strategically and selectively reinvesting to recapture high-value customers. The bank believes that a stronger user mentality will raise the bar for future competition in the industry.