Movement Alert|Meituan-W Rises 4.73% in Regular Trading, Q1 Earnings Beat Expectations with Significant Loss Narrowing

Market Focus
06/02

On June 2, Meituan-W rose 4.73% in regular trading, trading at 82.05 HKD/share, with trading volume of 1.351 billion HKD.

The rally was driven by Meituan's Q1 earnings released after market close on June 1, which came in above expectations. Revenue reached 91.039 billion yuan, up 5.6% year-over-year and above the consensus estimate of 90.795 billion yuan. Adjusted net loss was 4.97 billion yuan, significantly better than the market forecast of 6.83 billion yuan loss.

Notably, core local commerce operating loss narrowed dramatically to 2 billion yuan from 10 billion yuan in the prior quarter, representing an 80% sequential improvement. New business losses also contracted sharply to 2.1 billion yuan from 4.6 billion yuan quarter-over-quarter. Management indicated during the earnings call that delivery industry subsidies are trending toward rationality, with Q2 per-order unit economics expected to improve meaningfully versus Q1. Morgan Stanley maintains an Overweight rating with a 120 HKD target price, citing improved visibility on Meituan's path to profitability.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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