Goldman Sachs: Meituan-W (03690) takeaway business profits are recovering, or may achieve breakeven earlier than the next quarter.

Goldman Sachs released a research report stating that the outlook for the recovery of Meituan-W's food delivery business profit has become clearer. The first quarter performance showed that its unit economic efficiency has increased compared to the second largest competitor. It is currently forecasted that the company's core local business revenue in the second quarter will increase by 5% year-on-year, and the core local business EBIT is expected to reach 3.1 billion Chinese yuan, both better than previous forecasts. Goldman Sachs has raised Meituan's long-term profit forecast per order to 1 yuan Chinese yuan and expects to achieve breakeven earlier in the next quarter. It maintains a "buy" rating with a target price raised from 112 Hong Kong dollars to 116 Hong Kong dollars.