Meituan's Food Delivery Unit Economics Likely Turned Profitable in 2Q

Dow Jones
07/29

0922 GMT - Meituan's food delivery segment unit economics likely turned profitable in 2Q on a reduction in its segment subsidies, say analysts at China Galaxy International. The Chinese food delivery platform's leading sector position appears underpinned by its high-quality user base and higher average order value, they say. They project Meituan's core local commerce segment revenue to grow 4% in 2Q. Meituan is meanwhile likely to face easing competition in its in-store business, as rival Douyin shifts its focus to profitability, they add. CGI raises its 2026-2028 adjusted earnings per share forecasts by 1%-29% and upgrades its rating to add from hold. It also lifts its target price to 105 Hong Kong dollars from HK$86.00. Shares closed 2.2% higher at HK$92.30.

 

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