Institution: Meituan turning point is in sight.

Analysts from DBS Group's research department stated in a report that, driven by a reduction in losses from its food delivery business, Meituan's core local commerce division may see a turnaround in profitability in the second quarter. They wrote, "Competition pressure driven by subsidies is substantially easing," as evidenced by the significant narrowing of operating losses in the first quarter in this sector. With major competitors reducing subsidies and shifting resources away from the food delivery sector, this Chinese shopping and delivery platform is also expected to benefit from improved profit margins. DBS Group raised the company's profit forecast for 2026 and 2027 by 4% and 6% respectively, raised the target price from 119 Hong Kong dollars to 125 Hong Kong dollars, and maintained a buy rating.