Summary of Meituan's Conference Call Company Overview - **Company**: Meituan (3690.HK) - **Event**: Asia Leaders Conference 2025 - **Date**: September 5, 2025 - **Focus**: Food delivery competitive landscape, Instashopping growth, AI strategies, and financial outlook Key Points Industry and Competitive Landscape - **Food Delivery Competition**: Increased competition since June-July has significantly impacted unit economics due to elevated subsidy levels and higher delivery costs [5][7] - **Market Share**: Meituan aims to maintain its GTV market share leadership in the meal category, focusing on core users and extensive merchant coverage [5][7] - **Order Volume Growth**: Forecasted order volume growth of 13% for 3Q25 and 11% for FY25E, driven by industry-wide subsidies [5][7] Financial Performance and Projections - **EBIT Loss**: Expected food delivery EBIT loss of -Rmb22 billion for 2025E due to user subsidies [5][7] - **Instashopping Growth**: Anticipated order volume growth of 31% for 2025E, with an EBIT loss of -Rmb1.7 billion due to investments [6][7] - **Revenue Growth**: Projected IHT revenue growth of 13% year-over-year for 3Q25, with a 15% growth estimate for 2025E [8][7] Strategic Initiatives - **Instashopping and Xiaoxiang Supermarket**: Long-term GTV targets reiterated for both models by 2030E [5][7] - **AI and New Initiatives**: Focus on AI applications and expansion of Keeta, with expected losses from new initiatives of -Rmb2.3 billion for 3Q25E [8][7] Risks and Challenges - **Downside Risks**: Potential risks include intensified competition, labor cost inflation, food safety concerns, and larger-than-expected investments in Keeta [8][7] - **In-store Competition**: Stable competitive landscape, but impacted by macro factors and food delivery competition affecting margins [8][7] Market Outlook - **Long-term Confidence**: Despite near-term profit pressures, confidence remains in Meituan's local services leadership and recovery in profitability by 2026-27E [7][8] - **Price Target**: Buy-rated with a 12-month price target of HK$144, representing an upside of 39.8% from the current price of HK$103 [11][7] Financial Metrics - **Market Capitalization**: HK$642.5 billion / $82.4 billion [11][7] - **Revenue Projections**: Expected revenue of Rmb 337.6 billion for 2024, growing to Rmb 438.9 billion by 2027 [11][7] - **EBITDA and EPS**: Projected EBITDA of Rmb 49.1 billion for 2024, with EPS expected to be Rmb 7.03 in 2024 [11][7] Conclusion Meituan is navigating a challenging competitive landscape in food delivery while focusing on growth in Instashopping and leveraging AI strategies. The company remains optimistic about its long-term market position and profitability recovery, despite facing significant near-term challenges and risks.

Summary of JD.com Conference Call Company Overview - **Company**: JD.com (JD.OQ, JD US) - **Industry**: Media & Internet, specifically e-commerce in China Key Financial Highlights - **1Q25 Performance**: - Non-GAAP EPS increased by 49% year-over-year, exceeding Bloomberg consensus by 25% and internal forecasts by 15% [1] - Revenue grew by 16% year-over-year, surpassing the consensus estimate of 12% growth by 4% [1] - **FY25 Revenue Guidance**: - Raised from "high-single-digit percent" growth to "double-digit percent" growth, driven by JD Retail's expected revenue growth [1] - **Earnings Outlook**: - Management expressed caution regarding FY25 earnings, retracting previous guidance of high-single-digit percent growth in net profit due to necessary investments in the food delivery (FD) business [1][3] Investment in Food Delivery Business - **Commitment to FD**: - JD is committed to investing in the FD business, viewing it as a strategic initiative to build its on-demand retail (ODR) business and defend against competition from Meituan [2] - **Financial Impact**: - Expected operating loss from new businesses, including FD, to reach CNY 11 billion in FY25, compared to a loss of CNY 3.4 billion in FY24 [3] Revenue and Profit Projections - **Revised Projections**: - FY25F revenue projected at CNY 1,299,262 million, a 3% increase from previous estimates [18] - Non-GAAP net profit for FY25F revised down to CNY 46,930 million, a 10% decrease from earlier projections [18] - **JD Retail Performance**: - Anticipated revenue growth of 12% year-over-year and operating profit growth of 19% [3] Shareholder Returns - **Share Repurchase**: - JD has repurchased USD 1.5 billion worth of shares year-to-date, accounting for 2.8% of its market cap [3] - **Target Price**: - Target price lowered to USD 52 from USD 55, reflecting a 30% discount on JD's cash balance to account for FD investments [3][4] Market Position and Valuation - **Current Market Cap**: Approximately USD 53.99 billion [4] - **Stock Valuation**: - Currently trading at 8.8x FY25F P/E, with an implied upside of 39.6% based on the new target price [4] Risks and Considerations - **Downside Risks**: - Potential risks include further deterioration of the macroeconomic environment and weaker margin ramp-up for JD Retail and/or JD Logistics [12][38] Additional Insights - **E-commerce Model**: - JD operates primarily on a first-party (1P) model, providing marketplace and advertising services to third-party merchants [11] - **Logistics Services**: - JD Logistics offers comprehensive logistics services, which are integral to its retail ecosystem [11] This summary encapsulates the key points from the JD.com conference call, highlighting financial performance, strategic investments, market positioning, and potential risks.