Citigroup: Meow Entertainment's better-than-expected performance is expected to drive positive stock performance, rating it as "buy".

Citigroup issued a research report that Meituan will announce a profitable year, with estimated revenue of 4.6 billion to 4.7 billion yuan for the fiscal year 2025, in line with the bank's forecast of 46.6 billion yuan; net profit of 540 million to 590 million yuan, a year-on-year growth of 197% and 224%, 34% higher than the bank's forecast of 422 million yuan. Citigroup believes that Meituan's outstanding performance last year was due to the good year for Chinese films, with the movie "Nezha 2" contributing 15 billion yuan to the box office, and China's total box office last year was 52 billion yuan, 6% higher than Citigroup's forecast of 47 billion yuan, benefiting Meituan as the largest ticketing platform. Secondly, Meituan participated in multiple film projects, achieving good results and profits, including "Detective Chinatown 1900" with 3.6 billion box office revenue, "The Legend of Lao Mountain Little Monster" with 1.7 billion box office revenue, "Lychee in Chang'an" with 691 million box office revenue, "Demon Slayer: Infinity Train" with 678 million box office revenue, and "Legend of Hei 2" with 533 million box office revenue. Citigroup predicts that the announcement of the profitable year will drive the stock price of Meituan to perform positively, and will continue to see Meituan as a key leader in content investment in the film sector. Citigroup gives Meituan Entertainment a target price of 9.3 Hong Kong dollars, based on a PE ratio of 14 times in 2026, with a "buy" rating.