CMSC Global: maintains target price of HK$139 for MEITUAN-W (03690) with a rating of "hold"

CMSC International released a research report stating that the operating profit of MEITUAN-W (03690) new business in the third quarter of this year exceeded expectations. The bank believes that the stock price has reflected the incremental investment made by Meituan to defend its market share, and with competition becoming more rational, the prospect of profit recovery in 2026 is foreseeable. The target price of 139 Hong Kong dollars and the "buy" rating are temporarily maintained. The bank predicts that group flash purchases will maintain good growth momentum in the fourth quarter, in-store wine and travel will maintain double-digit growth, and also predicts that the growth rate of new business in the fourth quarter will accelerate to a year-on-year increase of 19%. Looking ahead to 2026, the bank predicts that Meituan's core local business revenue will increase by 12% year-on-year, with an operating profit of 18 billion RMB, and new business revenue will increase by 18% year-on-year.