HSBC Research published research reports stating that in a recent non-transaction roadshow event with Meituan's capital markets team, business structure changes and adjustments were mentioned, with the expectation that they will facilitate cross-selling and increase user transaction frequency. As Meituan's core local commerce department is undergoing business structure adjustments, the management team believes that time is needed to evaluate the potential synergies it brings. However, they reiterated that this year's primary goal is to bring high-frequency dining delivery user traffic into low-frequency in-store, hotel, and travel businesses to boost revenue.

Meituan has increased its new round of share buybacks to $2 billion. HSBC Research expects that this round of buybacks will be enough for the next 12 to 18 months. They also indicated that Meituan has no plans to issue convertible bonds for refinancing of existing debt to avoid dilution of stocks, and expressed confidence in the stock performance and its commitment to sustainable EPS growth. Considering Meituan's offshore cash of over $4 billion by the end of 2023, the bank believes that dividend payment is not the first choice for rewarding shareholders.

HSBC Research reiterates its "buy" rating and maintains its target price of RMB 170, pointing out that considering the good regulatory environment in the Middle East, higher resident spending power, and potential online penetration rate increase, the Middle East is expected to be Meituan's preferred market for expanding its overseas business.