The Zhitong Finance App learned that UBS released a research report stating that it gave Meituan-W (03690) a “buy” rating. After the results were announced, the earnings per share forecast for today and next two years were raised by 9% and 2%, respectively, and the target price was raised from HK$133 to HK$135.

According to the report, the company's last quarter's results beat expectations, revenue exceeded expectations by 2%, and adjusted operating and net profit were 34% and 25% higher than the bank's expectations, respectively. The bank continues to be optimistic about Meituan. If competition eases further in the second half of this year and next year, Meituan will provide room for improvement, including rising profit margins (reduced subsidies), takeout allowances (currently 4% lower than in 2019), and valuation multiples.