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<Research>BOCOMI: JD-SW Instant Retail Entry Into Food Delivery Mkt Aims to Complement Consumption Scenario; MEITUAN-W's Profit Growth Expected to Have Limited Downside Room
Recommend 6 Positive 11 Negative 4 |
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Recently, MEITUAN-W (03690.HK) and JD-SW (09618.HK) announced strategic upgrades in the instant retail industry respectively, BOCOMI released a research report saying. MEITUAN-W announced to invest RMB100 billion in the catering ecology in the next 3 years, including subsidies for merchants, quality enhancement and construction of industry infrastructures, and to strengthen consumer trust through the promotion of live broadcasting in the back kitchen, etc.. JD-SW announced a RMB10 billion subsidy policy for food delivery, with daily order volume for food delivery exceeding 5 million. JD-SW's instant retail entered the food delivery market, with the intention of supplementing the consumption scenario. With quality delivery and commission concessions as an entry point in achieving rapid volume incline in the initial period, the broker believed that JD-SW's increased subsidies focus on cultivating the mind of users to place orders and pry instant retail sales of all categories. Mew entrants in the industry may bring short-term subsidy fluctuations, BOCOMI added. However, based on MEITUAN-W's scale advantage, leading merchant services and food delivery capabilities, and considering that the new membership system is expected to enhance user stickiness and cross-scene conversion, the broker believed that the industry pattern will continue to be stable. The current price of MEITUAN-W corresponds to the 2025 PE ratio of 15x, corresponding to the profit growth rate of 17%, with limited downside room. AAStocks Financial News |
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