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The latest announcement is out from Meituan ( (HK:3690) ).
Meituan has warned investors that it expects to swing to a net loss of about RMB23.3 billion to RMB24.3 billion in 2025 from a profit of RMB35.8 billion in 2024, driven by a reversal from operating profit to operating loss in its Core Local Commerce segment and heavier spending on its overseas businesses. Management attributed the deterioration mainly to strategic investment in marketing, courier incentives, and merchant support amid what it described as unprecedentedly intense competition, which is expected to weigh on results at least into the first quarter of 2026, even as the group stresses that its operations remain stable and cash reserves are sufficient to fund its growth initiatives.
The company said it is recalibrating its operational strategy, including pushing further into AI and autonomous delivery, refining operations, and innovating products and business models to bolster efficiency and strengthen its ecosystem, arguing these moves will reinforce its long-term competitive position despite short-term margin pressure. The board emphasized its opposition to what it calls irrational competition and framed the current investment cycle as necessary to consolidate Meituan’s core strengths, better serve consumers and merchants, and support sustainable growth, while cautioning shareholders and potential investors about volatility as final 2025 results are still being prepared and remain subject to audit and possible adjustment.
The most recent analyst rating on (HK:3690) stock is a Hold with a HK$107.00 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.
More about Meituan
Meituan is a China-based technology company listed in Hong Kong that operates a broad local services ecosystem, with a core focus on food delivery, local commerce, and related on-demand services. The group connects consumers, couriers, and merchants through its digital platforms, competing in an increasingly crowded market for online-to-offline services in mainland China and expanding into overseas markets.
Average Trading Volume: 45,897,478
Technical Sentiment Signal: Sell
Current Market Cap: HK$543B
See more insights into 3690 stock on TipRanks’ Stock Analysis page.