Zhi Tong Cai Jing·2025-11-26 02:56Core Viewpoint - Meituan-W (03690) experienced a significant stock price increase, rising nearly 7% in early trading and currently up 5.85% at HKD 104, with a trading volume of HKD 7.823 billion. This movement is influenced by Alibaba's CFO comments regarding a reduction in investment in Taobao Flash Sales, indicating a potential "temporary truce" in competition [1]. Group 1: Company Performance - Meituan is set to hold a board meeting on November 28 to approve its quarterly performance [1]. - Citic Securities previously reported that Meituan's food delivery business losses are expected to peak in the current quarter, with competition intensity easing and subsidies returning to rational levels [1]. - It is anticipated that Meituan's food delivery market share will recover, with losses in the food delivery unit economics (UE) expected to be halved [1]. Group 2: Industry Insights - Alibaba's CFO indicated that the company's investment in Taobao Flash Sales will reach its peak in the September quarter, with a significant reduction expected in the next quarter due to improved efficiency and unit economics [1]. - The long-term outlook for Meituan's food delivery business includes substantial profit potential from international expansion, which may enhance the company's valuation flexibility [1].