Meituan-W (03690.HK) will announce its second-quarter results on Friday. According to the consensus forecast of nine analysts compiled by FactSet, Meituan is expected to record a net loss of RMB 1.43 billion in the second quarter, compared to a net profit of RMB 365.3 million in the same period last year; second-quarter revenue is expected to be RMB 101.56 billion, higher than RMB 91.84 billion in the same period last year. OCBC analysts stated that with the reduction in subsidies for its food delivery business, Meituan's unit economics for its food delivery business are expected to turn profitable in the second quarter, and Meituan's core local commerce business revenue is expected to grow by 4% in the second quarter. As competitor Douyin shifts its focus to profitability, the competitive pressure Meituan may face in its in-store business will also be alleviated. In addition, DBS Bank has raised its earnings forecasts for Meituan in 2026 and 2027 by 4% and 6% respectively, mainly due to improvements in the food delivery business.
