Core Viewpoint - The analyst downgraded Meituan to a hold rating due to concerns over the impacts of the subsidy war, indicating that Q3 results highlighted the significant pressure faced by the company, although it suggests that the worst may be over [1]. Company Analysis - Meituan is currently experiencing challenges related to a subsidy war, which has affected its financial performance in Q3 [1]. - The downgrade to a hold rating reflects a cautious outlook on the company's ability to navigate these pressures effectively [1]. Investment Strategy - The investment approach emphasizes identifying undervalued companies with long-term growth potential, focusing on buying quality companies at a discount to their intrinsic value [1].

Core Insights - Meituan is facing significant challenges this year primarily due to intense competition in the market [1] Group 1: Competitive Landscape - The competitive threat to Meituan was initially underestimated, but recent developments have highlighted the severity of the competition [1]

Core Viewpoint - The analyst maintains a buy rating for Meituan, citing strong business execution and a positive growth outlook as key factors for the investment thesis [1]. Company Analysis - Meituan is recognized for its effective operational execution, which contributes to its robust growth potential [1]. - The investment strategy focuses on identifying undervalued companies with long-term growth potential, emphasizing the importance of purchasing quality companies at a discount to their intrinsic value [1]. Investment Strategy - The investment approach combines value investing principles with a long-term growth focus, allowing for the compounding of earnings and shareholder returns over time [1].