Citigroup: Maintains a "buy" rating on MEITUAN-W (03690) with a target price of HK$200.

Citigroup released a research report stating that they maintain a "buy" rating for MEITUAN-W (03690) with a target price of 200 Hong Kong dollars. It is reported that Deliveroo has decided to exit the Hong Kong market by selling some assets to Foodpanda, a subsidiary of DeliveryHero. The bank believes that this is a positive outcome for Keeta/Meituan, as the Hong Kong market will now become a duopoly, with Keeta likely to gain more market share from Deliveroo and narrow the gap with Foodpanda, achieving a 50% market share for each in the coming months. With the recent launch of discount coupon packages, the bank believes that this will help Keeta improve its operating cash flow, stimulate a higher order frequency, and increase user stickiness. At the same time, successful marketing strategies and cases in the Hong Kong market can be replicated in Keeta's operations in the Middle East region.