Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5][12]. Core Insights - In Q3 2025, the company reported revenue of 95.5 billion yuan, a year-on-year increase of 2%. However, it faced a Non-IFRS net loss of 16 billion yuan, marking a shift from profit to loss compared to the previous year [2]. - The local core business revenue was 67.4 billion yuan, down 2.8% year-on-year, with an operating loss of 14.1 billion yuan, indicating a significant decline in profitability [3]. - New business revenue reached 28 billion yuan, reflecting a robust growth of 15.9% year-on-year, although it still incurred an operating loss of 1.3 billion yuan [4]. Financial Performance Summary - The company’s projected revenues for 2025, 2026, and 2027 are 364.1 billion yuan, 419.9 billion yuan, and 486.7 billion yuan, respectively. The Non-IFRS net profits are expected to be -18.1 billion yuan in 2025, 16.6 billion yuan in 2026, and 48.2 billion yuan in 2027 [5][10]. - The operating income growth rate is projected to be 7.88% in 2025, followed by 15.31% in 2026 and 15.91% in 2027 [10]. - The report indicates a significant improvement in operating efficiency and user engagement in the new business segments, particularly in grocery retail and international expansion [4].

Core Insights - The company reported a revenue increase of 2.0% year-on-year for Q3 2025, reaching RMB 955 billion, despite facing significant losses in its core local business segment due to intensified competition in the food delivery industry [1] - The company continues to enhance operational efficiency and consumer experience, focusing on service quality and market adaptability, which has led to record high daily active users and monthly transaction users in the food delivery sector [2] - The new business segment, including "Meituan Flash Purchase," is experiencing rapid growth, with increased user acquisition and transaction frequency, while expanding its supply capabilities and partnerships with leading brands [3] - The grocery retail business, including "Little Elephant Supermarket" and "Fast Donkey," is showing strong growth, and the company is exploring offline models to enhance supply chain capabilities [4] Financial Performance - For Q3 2025, the company's adjusted EBITDA and adjusted net profit both declined to negative RMB 148 billion and negative RMB 160 billion, respectively [1] - The core local business segment reported an operating loss of RMB 141 billion, while the new business segment's operating loss widened to RMB 13 billion [1] - As of September 30, 2025, the company held cash and cash equivalents of RMB 992 billion and short-term investments of RMB 421 billion [1] Business Strategy - The company is accelerating supply-side innovation and improving service quality to maintain its competitive edge in the food delivery market [2] - New supply models such as "Pin Hao Fan," "Shen Qiang Shou," and "Brand Satellite Stores" are being implemented to enhance collaboration with quality merchants and expand high-quality product coverage [2] - The launch of "Brand Officer Flag Flash Warehouse" aims to provide comprehensive instant retail infrastructure for retail brands, enhancing user growth and sales [3] Market Expansion - The company is expanding its global footprint with Keeta, which is seeing steady growth in markets like Hong Kong, Saudi Arabia, Qatar, Kuwait, UAE, and Brazil [4] - The company is focusing on improving consumer and delivery experiences in various regions through its product, technology, and operational advantages [4]

Core Insights - The company reported a revenue increase of 2.0% year-on-year for Q3 2025, reaching RMB 955 billion, despite facing intensified competition in the food delivery sector [1] - The core local commerce segment experienced a significant decline, resulting in an operating loss of RMB 141 billion, while the new business segment's losses expanded to RMB 13 billion [1] - Adjusted EBITDA and adjusted net profit for the quarter were negative, at RMB -148 billion and RMB -160 billion respectively [1] - As of September 30, 2025, the company held cash and cash equivalents of RMB 992 billion and short-term investments of RMB 421 billion [1] Local Commerce Segment - The company maintained industry-leading operational efficiency and consumer experience, focusing on service quality and market adaptability [2] - Innovations in supply-side offerings, such as "拼好饭" and "神抢手," enhanced partnerships with quality merchants, expanding high-quality product coverage [2] - Daily active users and monthly transaction users for food delivery reached record highs, with a stable growth in core user base and increased frequency of consumption [2] Instant Retail Segment - "美团闪购" continued to lead rapid growth and service upgrades, with increased new user growth and transaction frequency among core users [3] - The expansion of new supply models like "美团闪电仓" extended reliable lifestyle services across broader regions in China [3] - The launch of "品牌官旗闪电仓" provided comprehensive instant retail infrastructure for brands, enhancing user growth and sales [3] New Business Segment - The new business division showed robust performance with strong growth in grocery retail operations like "小象超市" and "快驴," improving operational efficiency [4] - The company is exploring offline models to enhance supply chain capabilities and expand coverage [4] - Keeta is accelerating global expansion, with steady growth in Hong Kong and Saudi Arabia, and recent entries into Kuwait and UAE markets [4]