On October 10th, Morgan Stanley released a report adjusting the profit forecast for Meituan (3690.HK) in response to a series of stimulus policies announced by the mainland government. The target price was raised from the original 125 Hong Kong dollars to 215 Hong Kong dollars, maintaining an 'overweight' rating. Morgan Stanley predicts that Meituan's third-quarter core local commerce (CLC) revenue will be 68.6 billion yuan (an 18.9% year-on-year increase), operating profit will be 13.9 billion yuan (a 37.3% year-on-year increase), total revenue will be 92.1 billion yuan (a 20.4% year-on-year increase), and EBITDA adjusted after non-IFRS will be 13.4 billion yuan (a 116% year-on-year increase). For the takeaway business, Morgan Stanley predicts a 11.5% and 14.5% year-on-year increase in sales/revenue, with operating profit growing by 33.2%. For in-house, hotel, and travel (IHT) businesses, the total transaction value (GTV) and revenue are expected to increase by 30% and 25.4% year-on-year, with operating profit increasing by 40.4%. For new businesses, the expected operating loss is 1.8 billion yuan. Morgan Stanley raised Meituan's adjusted net profit forecast for 2026 to 2028 by 15% to 25%, mainly benefiting from mainland government policy orientation, strengthening Morgan Stanley's belief that Meituan's CLC business GTV will double from 2024 to 2029. The report states that the latest target price corresponds to a forecasted pe ratio of 17 times in 2026. Meituan also expanded its share buyback plan to $4 billion, having executed approximately $3.6 billion since the beginning of the year.