Citigroup: MEITUAN-W (03690) LongCat-2.0 open source is conducive to competition moat maintenance, maintaining a "buy" rating.

Citibank released a research report stating that MEITUAN-W (03690) will officially open source the trillion-parameter large model LongCat-2.0. It is believed that this strategic move will further consolidate its leading position in the local life service market. The model's advanced Agentic architecture will improve internal research and development efficiency and attract external developers. The rating of "buy" for Meituan is maintained with a target price of 113 Hong Kong dollars. The report indicates that through the use of its vast and proprietary offline transaction and operational data, Meituan can provide unique AI-driven marketing and business insights for small and medium-sized business merchants. The bank believes this will create a competitive moat, distinguishing it from other large language model providers, and deepen its relationships with merchants and consumers. The bank believes Meituan's model has a clear differentiating advantage due to its proprietary data from its rider network and accumulated dispatch algorithm experience.