Company Coverage
Meituan (3690 HK): 2Q26: Earnings Beat; Food Delivery Remains Profitable Amid 3Q26 Seasonal Pressure
HOLD (Maintained)
Current price:
Target price:
Upside:
HK$77.50
HK$76.00
-1.9%
Analyst
Highlights
Meituan’s 2Q26 earnings beat expectations. Revenue increased 14.4% yoy to Rmb104.6b, 3-4% above our and consensus estimates. Non-IFRS net profit rose 69.0% yoy to Rmb2.5b, above expectations, while non-IFRS net margin improved to 2.4%. For 3Q26, Meituan expects CLC revenue to grow at mid-teens yoy, while new initiatives revenue growth should accelerate to around 30% yoy with losses broadly flat qoq. Food delivery should remain profitable despite seasonal pressure.
Maintain HOLD with an unchanged target price of HK$76.00.
Analysis
Core local commerce returned to profitability on improving operating efficiency. In 2Q26, Meituan’s core local commerce (CLC) segment revenue grew 10.1% yoy to Rmb71.5b (1Q26: +0.1% yoy), while CLC operating profit swung to Rmb5.7b from a Rmb2.0b operating loss in 1Q26. 2Q26 delivery services revenue increased 17.5% yoy to Rmb27.8b, returning to positive growth, mainly due to more disciplined spending on user incentives. Merchant services revenue, which combines commission revenue and online marketing services revenue, rose 6.6% yoy to Rmb42.4b. Product sales revenue increased 48.8% yoy to Rmb26.7b, supported by strong growth in self-operated categories. Sales and marketing expenses were Rmb24.7b, with the expense ratio declining from 25.2% in 1Q26 to 23.6% in 2Q26.
Highlights
Meituan’s 2Q26 earnings beat expectations. Revenue increased 14.4% yoy to Rmb104.6b, 3-4% above our and consensus estimates. Non-IFRS net profit rose 69.0% yoy to Rmb2.5b, above expectations, while non-IFRS net margin improved to 2.4%. For 3Q26, Meituan expects CLC revenue to grow at mid-teens yoy, while new initiatives revenue growth should accelerate to around 30% yoy with losses broadly flat qoq. Food delivery should remain profitable despite seasonal pressure.
Maintain HOLD with an unchanged target price of HK$76.00.
Analysis
Core local commerce returned to profitability on improving operating efficiency. In 2Q26, Meituan’s core local commerce (CLC) segment revenue grew 10.1% yoy to Rmb71.5b (1Q26: +0.1% yoy), while CLC operating profit swung to Rmb5.7b from a Rmb2.0b operating loss in 1Q26. 2Q26 delivery services revenue increased 17.5% yoy to Rmb27.8b, returning to positive growth, mainly due to more disciplined spending on user incentives. Merchant services revenue, which combines commission revenue and online marketing services revenue, rose 6.6% yoy to Rmb42.4b. Product sales revenue increased 48.8% yoy to Rmb26.7b, supported by strong growth in self-operated categories. Sales and marketing expenses were Rmb24.7b, with the expense ratio declining from 25.2% in 1Q26 to 23.6% in 2Q26.
HOLD (Maintained)
Current price:
Target price:
Upside:
HK$77.50
HK$76.00
-1.9%
Analyst
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