Citi: Maintaining the Meituan-W (03690) “Buy” Rating Target Price of HK$200

The Zhitong Finance App learned that Citi released a research report stating that it maintains the Meituan-W (03690) “buy” rating, and the target price is HK$200. According to reports, Deliveroo (Deliveroo) decided to withdraw from the Hong Kong market by selling some of its assets to DeliveryHero's FoodPanda. The bank believes this is a positive result for Keeta/Meituan, because the Hong Kong market will now become a duopoly market, and Keeta is likely to occupy more of the Deliveroo (Deliveroo) market share, close the gap with Foodpanda, and basically achieve 50% of each market share within the next few months.

With the recent launch of the coupon package, the bank believes this will help Keeta improve working capital conditions, stimulate higher order frequency, and increase user stickiness. At the same time, successful marketing strategies and cases in the Hong Kong market can be replicated in Keeta's operations in the Middle East region.