Citigroup: Meituan's first quarter performance exceeded expectations, target price raised to HK$113.

Citi released a research report stating that Meituan's performance in the first quarter of this year exceeded expectations, benefiting from improvements in the competitive landscape and a trend towards rational subsidies, as well as seasonal positive factors. The management expects the economic benefits of each takeaway order to return to balanced revenue and expenditure in the second quarter. With the profit margin of the dine-in business remaining stable, the core local commerce is expected to return to profitability in the second quarter of this year, faster than the bank's previous expectations. After adjusting the forecast, Citi raised Meituan's target price from HK$110 to HK$113 and maintained a "buy" rating.