Daily Investment Strategy
Daily focus：Meituan - W（3690）
Meituan's revenue in the first quarter of 2025 reached RMB 86.6bn, an increase of 18.1% yoy, and its operating profit increased significantly, but the management is more cautious about the future outlook. Faced with fierce competition from JD.com's 10bn subsidy war, Meituan will respond at all costs and increase investment in rider welfare and service quality to offset the impact of subsidies. In the short term, the growth rate of core local business revenue is expected to slow down, and operating profit may decline significantly in the second quarter. Due to ongoing competition and high uncertainty, the company is unable to provide guidance on future performance, reflecting management's conservative or even pessimistic attitude towards the market outlook.
EU agreed to accelerate negotiations with the United States
Last Sunday, after Trump announced a postponement of the 50% tariff on the European Union, the EU stated that it agreed to accelerate negotiations with the United States to avoid a transatlantic trade war. With Trump delaying the EU tariff deadline, the market temporarily breathed a sigh of relief, but the trade contest between the US and Europe is far from over, with July 9 being the next key date. The EU is pushing for phased tariff reductions and negotiations based on “mutual respect,” but Trump’s “America First” stance may turn the talks into a fierce confrontation.
Southbound Stock Connect recorded a net outflow of HKD 1.51 billion on Monday. Meituan (3690) saw the highest net inflow at HKD 2.08 billion, followed by China Mobile (941). Tencent Holdings (700) recorded the largest net outflow at HKD 2.09 billion, followed by Alibaba (9988).
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.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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