By Tracy Qu

Meituan is scheduled to report results for the first quarter on Monday. Here is what you need to know:

NET PROFIT: The Chinese food-delivery company is expected to report net profit of 7.93 billion yuan, equivalent to $1.10 billion, according to the consensus estimate of nine analysts polled by FactSet. That would be sharply higher than the 5.37 billion yuan reported in the year-earlier period.

REVENUE: Revenue is estimated at 85.4 billion yuan, according to FactSet, up from 73.275 billion yuan a year ago.

The company's Hong Kong-listed shares rose 2.7% in the first three months of the year, underperforming the benchmark Hang Seng Index's 15% gain that came amid optimism about Chinese AI startup DeepSeek and Beijing's more favorable stance toward private enterprises. Since then, Meituan's stock has fallen about 13% as macroeconomic uncertainties weighed on investors' sentiment globally.

WHAT TO WATCH:

--DOMESTIC COMPETITION: Investors will be interested in whether stiff competition from other Chinese food-delivery players has hindered Meituan's revenue growth. Citi analysts said in a research note that the initial food-delivery volume achieved by e-commerce giant JD.com, a new entrant, is expected to have a limited impact on Meituan's volume in the near term. However, they said the increased competition will likely force Meituan to step up platform subsidies for users, riders and merchants and accelerate the rollout of rider benefits, which will weigh on revenue growth and unit economics, an indicator measuring profitability per order in the delivery industry.

--OVERSEAS EXPANSION: Meituan is expected to provide an update on its overseas-expansion initiatives after the results, Citi analysts wrote in a separate note. While Brazil could be the company's next focus, it might also expand its Keeta app to other Arab nations in 2025, they said. The analysts noted that Meituan's international food-delivery app could enjoy a high user penetration, frequency and average order value in these new markets.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

May 22, 2025 21:50 ET (01:50 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.