AsianFin -- Meituan’s upcoming earnings report, set for release later on Friday, will provide insight into whether its stock can meet the bullish expectations of analysts.
According to Bloomberg data, analysts forecast Meituan’s share price to climb to HK$219.91 within the next year—a 31% increase from its last closing price. This projection places Meituan among the Chinese tech giants with the highest expected returns in Hong Kong.
Despite an 11% gain in Meituan’s stock this year, it has lagged behind the 31% surge of the Hang Seng Tech Index, as investors have prioritized companies more directly linked to China's AI boom. Analysts estimate Meituan’s fourth-quarter sales rose nearly 20% year-over-year, marking its slowest growth in over two years, though its gross margin is expected to improve to 37%.
With macroeconomic conditions stabilizing, investors will be closely watching Meituan’s food delivery outlook, competitive positioning, and investment in new business ventures, according to Thomas Chong, an analyst at Jefferies Financial Group Inc. The competitive landscape is intensifying, as JD.com entered the market in February with its JD Takeaway platform, adding further pressure to the food delivery sector.
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