Meituan falls most in 6 weeks on first quarter loss since 2022

Meituan

01/12/2025 01:55

** Shares of China's leading food delivery group Meituan 3690.HK fall 3.4% to HK$99.05, on course for the biggest one-day pct drop October 17

** Stock touches the lowest level since November 25 on the second session of decline

** Meituan swung to its first quarterly loss since late 2022 and warned of likely further losses next quarter as a price war with rivals Alibaba and JD.com squeezes margins

** Meituan reported an adjusted net loss of 16 bln yuan ($2.26 bln) for the quarter ended Sept 30 - the first quarterly loss since December 2022, according to LSEG data

** Jefferies maintains "Buy" but trims price target to HK$130 from HK$139, saying food delivery hit a peak in losses in 3Q and is expected to incur further losses in 4Q amid competition

** "For new initiatives, we expect higher losses in 4Q due to overseas expansion, but such losses in 2026 should not be bigger than in 2025" - Jefferies

** YTD, stock down 32.4%, Hang Seng TECH Index .HSTECH up 26.3%

($1 = 7.0750 Chinese yuan renminbi)

 (Reporting by Donny Kwok)

 ((donny.kwok@thomsonreuters.com))