HK Stock Market Move | MEITUAN-W (03690) surged over 5% in the afternoon; Meituan turned a profit in the second quarter on a quarter-to-quarter basis and expects an improvement in takeout user experience (UE) year-on-year in the third quarter.

MEITUAN-W (03690) rose more than 5% in the afternoon. As of the time of writing, it was up 5.02%, priced at HKD 81.55, with a transaction volume of HKD 2.67 billion. In terms of news, Meituan previously released its performance report, stating that revenue for the second quarter was approximately RMB 104.643 billion, a year-on-year increase of 14.4%; the profit during this period was RMB 2.155 billion, representing a year-on-year increase of 4.9 times, and a return to profitability compared to the previous quarter; the adjusted net profit was approximately RMB 2.524 billion, an increase of 69% year-on-year. Among these, the core local service segment's revenue grew by 10.1% year-on-year to RMB 71.5 billion. Benefiting from a significant improvement in the profitability of its on-demand delivery business, operational profit turned positive, reaching RMB 5.7 billion; the new business segment's revenue grew by 25% year-on-year to RMB 33.1 billion. It is worth noting that regarding the development of the food delivery business, Meituan's management stated that in the second quarter, the company continued to strengthen its leading advantages in user structure, order structure, and operational efficiency. Looking ahead to the third quarter, the food delivery unit economics (UE) is expected to improve significantly year-on-year, although it may see a seasonal decline compared to the previous quarter, but it is anticipated to remain positive.