Core Viewpoint - Meituan-W (03690) is recognized as a leading local business platform in China, with solid long-term barriers despite short-term competitive disturbances, focusing on exploring new business increments [1] Group 1: Business Overview - Meituan operates in key sectors including food delivery, instant retail, and in-store travel services, while actively developing new businesses such as Xiaoxiang Supermarket and Kuailu [1] - The macroeconomic environment serves as the largest beta factor, with the service industry showing higher growth rates compared to retail goods, indicating greater growth potential and resilience for the platform [1] - The increasing online penetration rate supports the stability of the food delivery segment, while the rapid penetration of in-store and instant retail services contributes to high growth [1] Group 2: International Expansion - The food delivery business is accelerating its expansion into overseas markets, achieving positive progress in regions such as Hong Kong and Saudi Arabia, with Keeta's Hong Kong operations already profitable as of October this year [2] - The quarterly user engagement (UE) metrics for Q3 2025 show significant growth, and the company plans to continue expanding into the Middle East and Latin America [2] - Although Meituan's internationalization strategy started later, its long-term strategic perspective is expected to significantly broaden the company's Total Addressable Market (TAM) and create structural flexibility for future profit growth [2]

Investment Rating - The report assigns an "Accumulate" rating for Meituan-W (03690) [2] Core Insights - Meituan is a leading local business platform in China, actively exploring new business increments while facing short-term profit pressure due to increased competition in its core local commerce segment [7][19] - The company is expanding its overseas market presence, which is expected to significantly broaden its Total Addressable Market (TAM) and create structural growth opportunities for future profitability [7][22] - Despite short-term losses, the long-term value of Meituan remains intact due to its established competitive advantages and operational efficiencies [7][30] Summary by Sections Company Overview - Meituan, founded in March 2010, has evolved into a comprehensive platform offering various local services, including food delivery, hotel bookings, and travel services [10] - The revenue structure for 2024 is projected to consist of 74% from core local commerce and 26% from new businesses [13] Q3 2025 Performance Review - In Q3 2025, Meituan reported revenue of 95.5 billion yuan, a year-on-year increase of 2%, but below market expectations [18] - The core local commerce segment generated revenue of 67.4 billion yuan, down 2.8% year-on-year, primarily due to increased subsidies impacting delivery service revenue [19] Competitive Landscape - The report highlights the competitive pressures from rivals like JD and Alibaba, which have intensified the subsidy wars in the food delivery market [24] - Meituan's operational efficiency and established market presence provide a strong defense against these competitive threats [25] International Expansion - Meituan's overseas expansion, particularly through its Keeta brand, has shown promising results in markets like Hong Kong and Saudi Arabia, with plans to further penetrate the Middle East and Latin America [22][29] Financial Forecast and Valuation - Revenue projections for 2025-2027 are estimated at 366.2 billion, 417.4 billion, and 468.9 billion yuan, respectively, with expected adjusted net profits of -17.4 billion, 17.1 billion, and 40.3 billion yuan [30][31] - The report emphasizes that while short-term losses are anticipated, the long-term outlook remains positive due to the company's solid market position and competitive advantages [30]

Core Viewpoint - Alibaba's latest financial report reveals a slight revenue increase of 5% year-on-year, but a significant decline in operating profit by 85%, attributed to the fierce competition in the food delivery market and heavy investments in AI infrastructure [1] Group 1: Financial Performance - Alibaba's revenue increased by 5% year-on-year, but operating profit saw a drastic decline of 85% during the reporting period [1] - The food delivery battle has led to substantial cash outflows for Alibaba, despite a 60% increase in instant retail revenue driven by the launch of "Taobao Flash Purchase" [1] Group 2: Market Competition - The food delivery market has seen Alibaba, JD.com, and Meituan all experiencing steady revenue growth, yet net profits have declined by double digits, indicating a stark contrast in performance [1] - The competition intensified in the third quarter, with Alibaba aggressively targeting Meituan, resulting in a surge of daily orders from 100 million to 250 million [1] Group 3: Strategic Insights - Alibaba's strategy involves not just competing in food delivery but also enhancing its overall e-commerce business, integrating retail operations, and creating a competitive edge in the market [2] - JD.com has shifted its focus from food delivery to in-store services, while Meituan has been preparing to expand its offerings beyond food delivery into a broader range of instant retail categories [2] Group 4: Marketing and Consumer Engagement - The intense competition serves as a marketing strategy and a means to enhance competitive capabilities, focusing on operational efficiency, resource integration, and innovative business models [3] - The battle for consumer attention in the food delivery sector is crucial, with companies prioritizing comprehensive strength over mere profitability [3]

Core Points - DoorDash has completed the acquisition of Deliveroo, enhancing its position as a global leader in local commerce [1][3] - The acquisition was finalized following court sanction and is expected to benefit both companies by leveraging DoorDash's scale and resources [2][3] Company Overview - DoorDash is a leading global local commerce platform founded in 2013, operating in over 30 countries and focusing on technology and logistics to drive economic vitality [4] - Deliveroo, also founded in 2013, partners with approximately 176,000 restaurants and retailers, serving around 7 million monthly active consumers in 2024 [5][6]

Core Viewpoint - The company anticipates short-term fluctuations in financial performance while committing to fair competition and increasing ecosystem investments [1] Financial Performance - The company expects the growth rate of core local business revenue in Q2 2025 to be lower than the same period last year [1] - There is a significant year-on-year decline in operating profit margin [1] Industry Competition - The company cannot predict how long irrational competition within the industry will last [1] - The company believes it can defend and consolidate its position in the market despite competitive pressures [1]