HK Stock Market Move | MEITUAN-W (03690) rose nearly 3% in late trading as Meituan's Q2 performance exceeded expectations, with operating profits turning positive.

MEITUAN-W (03690) rose nearly 3% in the late trading session. As of the time of publication, it increased by 2.67% to HK$78.7, with a trading volume of HK$3.165 billion. In terms of news, Meituan announced its financial results for the second quarter of 2026, reporting revenues of approximately 104.643 billion yuan, a year-on-year increase of 14.4%; net profit for the period was 2.155 billion yuan, up 4.9 times; and adjusted net profit was about 2.524 billion yuan, representing a 69% year-on-year growth. Among them, the core local commerce segment's revenue grew by 10.1% year-on-year to 71.5 billion yuan. Thanks to a significant improvement in the profitability of its on-demand delivery business, operating profit turned positive, reaching 5.7 billion yuan; the new business segment's revenue also grew by 25% year-on-year to 33.1 billion yuan. Citi pointed out that Meituan's performance in the second quarter exceeded expectations, with total revenue growing by 14.4% year-on-year, which was 2.9% and 3.5% higher than the bank's and market forecasts, respectively. During the period, the operating profit of the core local business showed significant improvement to 5.67 billion yuan, far exceeding the bank's and market's expectations of 3.22 billion and 3.42 billion yuan, respectively. JP Morgan stated that Meituan's delivery business achieved profitability in the second quarter, and management expects that despite the rising seasonal delivery costs and increased investment in membership and marketing, the delivery business can still maintain profitability in the third quarter.