haitong int'l released a report, adjusting the third-quarter performance forecast for Meituan-W (03690.HK), expecting a 21% year-on-year increase in quarterly revenue to 92.2 billion yuan, in line with the market consensus of 91.9 billion yuan. Adjusted net profit is expected to be 13.4 billion yuan, higher than the market consensus of 11.8 billion yuan by 14%. The bank forecasts Meituan's core revenue to increase by 19.2% year-on-year to 68.8 billion yuan, with an operating profit forecast of 13.6 billion yuan and an operating profit rate forecast of 19.8%. New business revenue is expected to be 23.5 billion yuan, in line with market consensus, with a loss of 1.8 billion yuan, compared to a loss of 5.1 billion yuan in the same quarter last year.

The report points out that Meituan is one of the most popular stocks among investors in the recent surge of technology stocks, due to its solid performance forecast for this year and competitive advantages with a clear investment concept. The bank holds a positive view on the improvement in the fundamental aspects of the company due to mainland consumer policies. It maintains an "outperform the market" rating on the stock with a target price adjusted to 230 yuan.