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Meituan(3690): Q4 2025 results were weak, with total revenue reaching RMB 92.1 billion, a slight year-on-year increase of 4.1%, largely in line with market expectations. However, profitability significantly missed expectations, with the group reporting an adjusted net loss of RMB 15.1 billion, more severe than the market consensus forecast of a loss of RMB 12.96 billion. During the conference call, management clearly stated its opposition to cutthroat competition, stating that Meituan is shifting resources away from low-priced and low-quality orders and focusing on driving high-quality growth. The company expects a "more meaningful" improvement in average order loss per food delivery order in the first quarter compared to the previous quarter, reflecting Meituan's determination to exit the food delivery war. Furthermore, Meituan anticipates that Saudi Keeta will achieve profitability by the end of the year, and expects the overall loss of the new business segment in 2026 to not exceed that of 2025.
Strong risk aversion in the market
International crude oil prices surged on Thursday, impacted by escalating tensions between the US and Iran and the Strait of Hormuz blockade. All three major US stock indices closed lower, with the Nasdaq leading the decline, reflecting strong risk aversion in the market. Initial jobless claims remained low at 210,000, while continuing claims hit a two-year low, reflecting the continued resilience of the labor market but also reinforcing the Federal Reserve's case for delaying interest rate cuts. Adding to the woes, the University of Michigan's one-year inflation forecast rose to 3.4%, driven by the Middle East situation and soaring oil prices, raising concerns about a renewed inflationary spiral.
Hong Kong Stock Connect saw a net inflow of HK$3.34 billion on Thursday, with the Tracker Fund of Hong Kong (02800) seeing the largest inflow at HK$1.38 billion, followed by CNOOC (00883). Alibaba-W (09988) recorded the largest net outflow at HK$998 million, followed by SMIC (00981).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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