Meituan: Instashopping achieved strong Q2 growth in order volume and GTV, strengthening market position

Meituan: Instashopping achieved strong Q2 growth in order volume and GTV, strengthening market position

Meituan-W (03690.HK), a leading online-to-offline (O2O) platform, has reported robust growth in its Instashopping segment for the second quarter of 2025. According to a recent report by CLSA [2], the company's core local commerce business saw a 12% year-over-year (YoY) increase in total revenue, reaching RMB92.1 billion. This growth was primarily driven by a 13% increase in instant delivery order volume and a 20% rise in in-store transaction value.

The company's gross transaction value (GTV) for Instashopping also showed strong growth, with a 10% YoY increase to RMB67 billion. However, CLSA predicted a 32% drop in adjusted EBIT for the core local commerce segment to RMB10.3 billion, primarily due to intensified market competition and promotional activities. The broker also noted that the impact of heightened subsidies and rider costs on the profitability of Meituan-W's food delivery business would extend into the third quarter of 2025.

Despite the challenges, Meituan-W's Instashopping segment has strengthened its market position. The company's ability to adapt to changing consumer demands and intensify promotional activities has been a key factor in its growth. The company's target price was cut from HKD185 to HKD150, but its rating was kept as Outperform.

References:
[1] https://www.marketscreener.com/news/ke-holdings-inc-announces-second-quarter-2025-unaudited-financial-results-and-upsizing-and-extensio-ce7c50d9d98cf120
[2] http://www.aastocks.com/en/stocks/news/aafn-con/NOW.1464337/positive-news/AAFN