Core Viewpoint - Meituan-W (03690) has seen a significant increase in stock price, rising over 4% recently and accumulating a total increase of over 12% this week, indicating positive market sentiment towards the company's growth strategies in the Middle East [1] Group 1: Company Developments - Meituan's international food delivery brand, keeta, has officially launched operations in Kuwait, marking it as the third location in the Middle East after Saudi Arabia and Qatar [1] - The rapid expansion of keeta in the Middle East is based on its successful establishment in Saudi Arabia over the past year, demonstrating the company's commitment to a multi-country international development model [1] Group 2: Market and Competitive Landscape - According to a report by Shenwan Hongyuan, the regulatory emphasis on rational competition and promotion strategies has led to a more measured approach to subsidies among major platforms, including Meituan, Taobao, and JD.com [1] - The report indicates that Meituan is focusing on differentiated projects like "Pin Hao Fan" to enhance structural efficiency and reduce unsustainable growth patterns [1] - GF Securities forecasts that the e-commerce sector will continue to face pressure from food delivery competition, potentially impacting performance in Q3 and Q4, but anticipates a turning point in profitability for Meituan and Alibaba once subsidy levels decrease [1]

Group 1 - Meituan-W (03690) has seen a stock price increase of over 4%, with a cumulative rise of more than 12% this week, currently trading at 108.7 HKD with a transaction volume of 5.432 billion HKD [1] - Meituan's international food delivery brand, keeta, has officially launched operations in Kuwait, marking it as the third location in the Gulf region after Saudi Arabia and Qatar [1] - Based on the successful establishment in Saudi Arabia over the past year, keeta is accelerating its expansion in the Middle East, having launched in Qatar in August and now in Kuwait within a month [1] Group 2 - According to a report from Shenwan Hongyuan, the market regulatory authority has emphasized the need for rational competition and regulation of promotions among major platforms, leading to a more rational subsidy strategy [1] - Meituan, along with Taobao and JD.com, is implementing differentiated projects such as "Pin Hao Fan," "Bao Pin Tuan," and "Qi Xian Xiao Chu" to enhance structural efficiency and reduce unsustainable growth [1] - GF Securities projects that the e-commerce sector will continue to face pressure from food delivery competition in Q3 and Q4, potentially impacting performance [1] - In the long term, a reduction in subsidy intensity from both Meituan and Alibaba is expected to lead to a turning point in profitability for both companies [1]

Investment Rating - The report maintains a positive outlook on the industry, indicating a transition towards rational competition among major platforms [6][9]. Core Insights - The market regulatory authority's recent discussions with major platforms signal a shift from aggressive subsidy strategies to more sustainable competition, particularly in the food delivery sector [9][12]. - Major platforms like Meituan, Alibaba, and JD are adapting their strategies in response to regulatory pressures, focusing on enhancing operational efficiency and product quality rather than merely increasing order volumes [12][15][17]. - The report highlights the emergence of differentiated competition strategies among platforms, with each leveraging its core strengths to align with long-term strategic goals [6][9]. Summary by Sections Market Overview - From July 21 to July 25, 2025, the social service index rose by 2.30%, outperforming the CSI 300 by 0.61 percentage points, ranking 17th among Shenwan's primary industries. The commercial retail index increased by 2.65%, surpassing the CSI 300 by 0.96 percentage points, ranking 14th [20][21]. Company Strategies - Meituan has shifted its focus from sheer order volume to structural efficiency improvements, launching initiatives like the "Wan Jia Brand Plan" to enhance service quality and stabilize supply [12][14]. - Alibaba has responded to regulatory demands by promoting compliance and launching the "Explosion Group" model to attract price-sensitive consumers while maintaining subsidy levels [15][16]. - JD has positioned itself in the quality segment by launching the "Seven Fresh Kitchen" project, emphasizing user experience and supply chain capabilities, with plans to open 10,000 locations within three years [17][18]. Investment Recommendations - The report suggests focusing on e-commerce sectors that emphasize core business strengths and AI investments, including Alibaba, JD, Meituan, and Pinduoduo. It also highlights opportunities in premium jewelry brands and comprehensive trade service providers that are advancing digital transformation [6][9].