By Megan Cheah

Hong Kong-listed Meituan's shares fell to their lowest intraday level since March 2024 on Thursday after Moody's Ratings revised the food-delivery platform's ratings outlook to negative.

The stock dropped as much as 5.1% to 84.30 Hong Kong dollars, equivalent to US$10.78, before trimming losses and closing 4.5% lower at HK$84.85.

A recovery in Meituan's food-delivery business appears increasingly uncertain, Moody's Ratings senior analyst Ying Wang said in a report on Wednesday.

Intense competition in the sector is likely to continue pressuring margins and increase investment requirements, said the vice president and senior analyst. These are expected to keep the company's leverage elevated for longer than previously anticipated.

Meituan's clouded prospects led Moody's Ratings to revise its rating outlook on the Chinese food-delivery giant to negative from stable.

Still, the ratings company affirmed Meituan's issuer rating, citing its consistently prudent financial management and solid net cash position.

Subsidy-driven competition in China's food-delivery market is likely to ease gradually, although the timing of any recovery is still unknown, he said.

"We also expect continuous steady performance from the company's core in store, hotel and travel service segment, which will provide some buffer as the food delivery business gradually recovers," Wang said.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

February 12, 2026 03:27 ET (08:27 GMT)

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