JD Takeout vs. Meituan: After burning money to grab 5% market share, who can withstand the fight in profitability?

J.P. Morgan pointed out that although JD.com's entry into the market poses potential downside risks to the short-term profit prospects of both companies, Meituan's short-term profit may be more resilient than JD.com's, as Meituan has not adopted a price subsidy strategy. In terms of valuation, Meituan has greater relative upside potential, with sustainable double-digit profit prospects making it a top pick in the Chinese internet sector, with a typical trading valuation of 15-20 times forward P/E ratio. They maintain a "hold" rating on both companies, but are more optimistic about Meituan in the short term.