Meituan (3690.HK): Recovery Plays as 2026E EPS Turns Positive on Core Local Commerce Scale

Meituan is a technology-driven retail company operating primarily in mainland China, with additional presence in Hong Kong, Macao, Taiwan, and internationally. It operates through its Core Local Commerce and New Initiatives segments, offering food delivery, in-store services, hotel and travel booking, bike and e-moped sharing, power banks, micro-credit, supermarkets, e-commerce, and merchant services. The company is a large-scale platform with a market capitalization of about HK$505.8 billion and more than 111,000 employees, underscoring its reach across local commerce and on-demand services. Recent fundamentals show revenue growth of 14.4% year over year in the latest quarter, but earnings remain pressured, with trailing net income negative and operating margin slightly below zero. Valuation appears anchored to a forward recovery story rather than trailing earnings, with a forward P/E of 15.7 and consensus EPS estimates improving materially into next year. The stock also sits near its 200-day moving average after trading below the 52-week high, making it a notable name for investors tracking China consumer internet and profitability normalization.