Goldman Sachs has released a research report indicating that the profit recovery trajectory for MEITUAN-W's (03690) food delivery business has become clearer. The first-quarter results showed its unit economics widening compared to its second-largest competitor. The firm currently forecasts the company's core local commerce revenue will grow 5% year-over-year in the second quarter, with core local commerce EBIT expected to reach RMB 3.1 billion, both exceeding previous projections.

Goldman Sachs has raised its long-term profit-per-order forecast for Meituan's food delivery business to RMB 1 and expects it could achieve break-even ahead of schedule, potentially in the second quarter. The investment bank maintains its "Buy" rating on the stock and has increased its target price from HK$112 to HK$116.