Freedom: Meituan Shares Could Surge Over 50% as China’s Price War Ends

Chinese company Meituan (3690) reported Q1 2026 financial results that exceeded market expectations. The company’s revenue grew by 5.6% YoY, reaching ¥ 91 billion, while the net loss amounted to ¥6.8 billion, compared to the market’s expected ¥8.8 billion.

Freedom Broker maintains a Buy recommendation for Meituan shares, with a target price of HK$120. This implies an upside potential of more than 50% from current levels.

Meituan is China’s largest platform for local services, operating in segments such as food delivery, online hotel booking, travel services, retail trade, and express delivery. The company serves hundreds of millions of users and holds a leading position in China’s delivery market.

According to Roman Lukyanchikov, Deputy Director of the Analytical Department at Freedom, the key positive factor for the company was the intervention of Chinese authorities aimed at curbing excessive competition in the e-commerce and delivery sectors.

Despite ongoing pressure from JD.com and Alibaba, the company continues to develop new business areas. The new initiatives segment is growing particularly fast, with revenue up 21.3%, driven by the expansion of the Xiaoxiang Supermarket chain and the international delivery service Keeta.

The analyst points out that weak consumer demand in China remains the main factor of uncertainty.

Not an individual investment recommendation.