On the afternoon of March 25, the Hong Kong stock platform economy sector suddenly strengthened, with Meituan-W (03690.HK) standing out. During the session, its share price surged up to 11.96%, closing at HK$88.45 at the time of reporting, with a trading volume of HK$14.028 billion, making it one of the focal points for investors that day.

(Image Source: uSMART HK app)

Regulatory Signal Points to Turning Point in “Chaotic Competition”

According to reports, the State Administration for Market Regulation (SAMR) reposted a commentary from the Economic Daily titled “The Food Delivery War Should End,” signaling the regulators’ stance on the intense competition in the food delivery industry.

The report noted that regulators have made phased progress in antitrust investigations of food delivery platforms and have conducted on-site inspections. They will also strengthen oversight through surveys, data verification, and explore subsequent enforcement measures.

The market interpreted this as indicating that the previous “cash-burning expansion model” driven by subsidies and price wars may be constrained, and industry competition could shift from “scale-first” to “efficiency-first.”

After long-term high-intensity competition, profit margins in the food delivery sector have been squeezed. This regulatory intervention is essentially aimed at “cooling down” the industry and promoting a return to rational market order.

Market Logic Restructured: From “Subsidy Battles” to “Profit Competitions”

For Meituan-W (03690.HK), stricter regulation may be a medium- to long-term positive.

In recent years, the food delivery industry has continuously increased subsidies amid fierce competition, leading to high fulfillment and marketing costs that put pressure on profit margins. Once the price wars ease, platforms can reduce ineffective spending and improve per-order profitability.

The market generally believes that after regulatory-driven standardization, the leading platforms’ scale advantage, delivery network, and merchant system will be further strengthened, gradually unlocking profit restoration potential.

In other words, competition will shift from “who subsidizes more” to “who is more efficient,” and the value of leading companies will be re-evaluated.

Earnings Window Approaching, Capital Prepares for Positive Surprise

Besides regulatory factors, company fundamentals also support the stock. Meituan-W (03690.HK) will hold a board meeting on March 26 to review its full-year results for the fiscal year ending December 31, 2025. Investors are positioning ahead of earnings, reflecting expectations of improved profitability and optimized business structure.

In recent years, Meituan has continued to expand its local services ecosystem, diversifying beyond food delivery into in-store, hotel & travel, and instant retail businesses. In the context of easing competition, such diversification could further unlock synergy effects.

Conclusion: Short-Term Catalysts Combine with Long-Term Logic, Valuation Recovery May Just Begin

Overall, Meituan-W’s (03690.HK) sharp price surge reflects both a swift reaction to regulatory signals and an anticipatory pricing of a potential reshaping of the industry competition landscape.

In the short term, policy statements and earnings expectations act as direct catalysts; in the medium to long term, the industry’s shift from “chaotic expansion” to “high-quality development” may mark an important starting point for platform economy valuation recovery. If regulatory pace and industry adjustments continue, the food delivery market may exit the “price war era,” and leading platforms’ profitability and valuation frameworks could undergo a new round of reconstruction.

How to Buy Meituan via on uSMART

After logging into the uSMART HK app, click the “Search” button in the top-right corner of the page, enter the ticker code(03690.HK), and navigate to the details page to view transaction details and historical trends. Click the “Trade” button in the bottom-right corner, select the trade type, and submit your order after filling in the transaction conditions.

(Image Source: uSMART HK app)