Q1 Results from Meituan, PDD & Kuaishou
6 Min. Read Time
Q1 Earnings Reports
Meituan
Meituan (3690 HK) reported Q1 earnings after the Hong Kong close on Monday that beat analyst expectations. Management addressed the recent RMB 10B food delivery subsidies from JD.com and Alibaba’s Ele.me, stating that after ten years of competition, Meituan is “going to take whatever measure it takes to win the game.” The company has highlighted the recent success of Meituan's "Insta-shopping" in “3C home appliance, beauty and personal care, mom and child, pet care, daily necessity, and apparel.” The company will invest RMB 100B in food subsidy promotion plan over the next three years.
- Revenue increased by +18.10% to RMB 86.56B from RMB 73.28 and versus expectations of RMB 85.40B.
- Adjusted Net Income increased by +46.20% to RMB 10.95B from RMB 7.39B and versus expectations of RMB 9.72B.
- Adjusted EPS increased by +48.00% to RMB 1.79 from RMB 1.21 and versus expectations of RMB 1.59.
PDD
E-Commerce company PDD reported its Q1 earnings before the US market open today. “In the first quarter, we made substantial investments in our platform ecosystem to support merchants and consumers amid rapid changes in the external environment,” said Mr. Lei Chen, Chairman and Co-Chief Executive Officer of PDD Holdings. The “external environment” refers to the challenges Temu faces due to US tariffs and the elimination of the de minimis exemption. The investment in the core business weighed significantly on the bottom line. PDD did not mention relisting in Hong Kong on the management call, which is disappointing.
- Revenue increased by +10.00% to RMB 95.67B from RMB 86.81B and versus expectations of RMB 101.60B.
- Adjusted Net Income decreased by -45.00% to RMB 16.92B from RMB 30.60B and versus expectations RMB 27.88B.
- Adjusted EPS decreased to RMB 11.41 from RMB 20.72 and versus expectations of RMB 19.11.
Kuaishou
Online video Kuaishou (1024 HK) reported its Q1 earnings and attributed the strong results to its large video generation model called Kling AI, though adjusted EPS was a touch light.
- Revenue increased by +10.90% to RMB 32.61B from RMB 29.41B and versus expectations of RMB 32.20B.
- Adjusted Net Income increased by +4.4% to RMB 4.58B from RMB 4.39B and versus expectations of RMB 4.50B.
- Adjusted EPS decreased to RMB 0.93 from RMB 0.95 and versus expectations of RMB 1.02.
- Average Daily and Monthly Users increased to 408mm from 393mm and 711mm from 697mm.
- Value of goods sold via E-Commerce increased by +15.4% to RMB 332B from RMB 288B.
- During the three months ended March 31, 2025 and up to the Latest Practicable Date, the Company repurchased a total of 29,188,100 Class B Shares.
Key News
Asian equities delivered a mixed performance overnight as the US dollar strengthened and Thailand underperformed among regional markets.
Hong Kong rebounded following Monday’s weak trading session, which was driven by price wars in the electric vehicle (EV) and hybrid sectors after BYD Company Limited (BYD, -1.65% today, -8.6% yesterday) cut prices. Autos were mixed after yesterday’s steep sell-off: Geely Automobile Holdings Limited (Geely, -1.74% today, -9.46% yesterday), Li Auto Inc. (Li Auto, +1.64% today, -3.17% yesterday), XPeng Inc. (XPeng, +0.27% today, -4.44% yesterday), and NIO Inc. (NIO, -2.06% today, -3% yesterday).
Internet stocks rebounded after yesterday’s downdraft. Meituan (Meituan, +2.09% today, -5.48% yesterday) rose after reporting earnings following the Hong Kong close and on strong buying via Southbound Stock Connect. Other notable moves included Tencent Holdings Limited (Tencent, +0.39% today, -1.54% yesterday), Alibaba Group Holding Limited (Alibaba, +0.94% today, -1.6% yesterday), JD.com Inc. (JD.com, -1% today, -1.74% yesterday), Kuaishou Technology (Kuaishou, +0.52% today, -0.51% yesterday), NetEase Inc. (NetEase, +1.53% today, +0.37% yesterday), and Trip.com Group Limited (Trip.com, +0.33% today, -0.66% yesterday). There were numerous headlines about the food delivery rivalry among Meituan, Alibaba’s Ele.me, and JD.com, though Meituan traded higher following its strong results.
Hong Kong remained resilient as the pre-Liberation Day resistance level continued to hold following the recent rally. Mainland China had a weak session, with banks outperforming, though trading volumes in the National Team’s favored exchange-traded funds (ETFs) were light. Semiconductor stocks saw profit-taking after yesterday’s strong performance, which had been driven by news that Nvidia Corporation would be selling lower-level chips to Chinese companies.
After the close in Mainland China, Beijing Chengtong CES Financial Investment Co. announced an investment of 600 million renminbi (RMB) into three ETFs focused on state-owned enterprises (SOEs) in the digital economy. The Lujiazui Forum, an economic policy-focused event, is scheduled to take place in Shanghai on June 18th and 19th. Meanwhile, Moody’s reaffirmed China’s sovereign credit rating at “A1”, with a negative outlook.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | 0.4% |
| Hang Seng Tech | HSTECH Index | 0.5% |
| Hong Kong Turnover | HKTurn Index | -9.1% |
| Hong Kong Short Sale Turnover | HKSST Index | -13.9% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 18.5% |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | 487.6 |
| China (Shanghai) | SHCOMP Index | -0.2% |
| China (Shenzhen) | SZCOMP Index | -0.3% |
| China (STAR Board) | Star50 Index | -1% |
| Mainland Turnover | .chturn Index | -1% |
| Nouthbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | Not Available |
| Jing Daily China Global Luxury Index | CHINALUX Index | 0% |
| Japan | NKY Index | 0.5% |
| India | SENSEX Index | -0.8% |
| Indonesia | JCI Index | 0.1% |
| Malaysia | FBMKLCI Index | -0.5% |
| Pakistan | KSE100 Index | 0.1% |
| Philippines | PCOMP Index | -0.1% |
| South Korea | KOSPI Index | -0.3% |
| Taiwan | TWSE Index | -0.9% |
| Thailand | SET Index | -1.3% |
| Singapore | STI Index | 0.5% |
| Australia | AS51 Index | 0.6% |
| Vietnam | VNINDEX Index | 0.5% |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 1.09 | 0.8 |
| Advancing Stocks | 292 | 2328 |
| Declining Stocks | 173 | 2606 |
| Outperforming Factors | Quality, Buybacks, Growth | Low Volatility, Value, Dividend Yield |
| Underperforming Factors | Value, Dividend Yield, Liquidity | Growth Liquidity, Momentum |
| Top Sectors | Healthcare, Staples, Discretionary | Healthcare, Real Estate, Finacials |
| Bottom Sectors | Materials | Materials, Tech, Discretionary |
| Top Subsectors | Consumer Services, Consumer Durables/Apparel, Pharmaceuticals | Office Supplies, Soft Drinks, Fertilizer/Pesticides |
| Bottom Subsectors | Household/Personal Products, Non Ferrous Metals, Electronic Equipment | Precious Metals, Motorcycle, Construction Machinery |
| Southbound Connect Buys | HK Tracker ETF (Very Large), Horizon Robotics, Meituan (Large), Pop Mart, Xiaomi (Small) | |
| Southbound Connect Sells | Alibaba, Tencent (Large) |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 151 | 0.51 |
| Communication Services | 9 | 0.48 |
| Consumer Discretionary | 28 | 0.61 |
| Consumer Staples | 13 | 1.27 |
| Energy | 7 | 0.26 |
| Financials | 23 | 0.24 |
| Health Care | 13 | 3.2 |
| Industrials | 20 | 0.13 |
| Information Technology | 10 | 0.25 |
| Materials | 10 | -2.15 |
| Real Estate | 6 | 0.53 |
| Utilities | 12 | 0.28 |
| Mainland China Listed | 404 | -0.68 |
| Communication Services | 6 | -0.58 |
| Consumer Discretionary | 31 | -1.37 |
| Consumer Staples | 24 | -0.34 |
| Energy | 13 | -0.71 |
| Financials | 64 | 0.09 |
| Health Care | 31 | 0.21 |
| Industrials | 64 | -0.92 |
| Information Technology | 91 | -1.47 |
| Materials | 58 | -1.56 |
| Real Estate | 6 | 0.1 |
| Utilities | 16 | -0.5 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | 0.4 |
| Alibaba HK | 9988 HK Equity | 0.9 |
| JD.com HK | 9618 HK Equity | -1 |
| NetEase HK | 9999 HK Equity | 1.5 |
| Yum China HK | 9987 HK Equity | 0.9 |
| Baozun HK | 9991 HK Equity | 0.1 |
| Baidu HK | 9888 HK Equity | -0.1 |
| Autohome HK | 2518 HK Equity | -0.3 |
| Bilibili HK | 9626 HK Equity | 0.1 |
| Trip.com HK | 9961 HK Equity | 0.3 |
| EDU HK | 9901 HK Equity | 2.9 |
| Xpeng HK | 9868 HK Equity | 0.3 |
| Weibo HK | 9898 HK Equity | -1.5 |
| Li Auto HK | 2015 HK Equity | 1.6 |
| Nio Auto HK | 9866 HK Equity | -2.1 |
| Zhihu HK | 2390 HK Equity | -1.5 |
| KE HK | 2423 HK Equity | -1.2 |
| Tencent Music Entertainment HK | 1698 HK Equity | 0.2 |
| Meituan HK | 3690 HK Equity | 2.1 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| MEITUAN-CLASS B | 2.1 |
| TENCENT HOLDINGS LTD | 0.4 |
| BYD CO LTD-H | -1.6 |
| XIAOMI CORP-CLASS B | 0.5 |
| ALIBABA GROUP HOLDING LTD | 0.9 |
| HONG KONG EXCHANGES & CLEAR | 2.8 |
| HORIZON ROBOTICS INC | 11.4 |
| POP MART INTERNATIONAL GROUP | 5.4 |
| JD.COM INC-CLASS A | -1 |
| GEELY AUTOMOBILE HOLDINGS LT | -1.7 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| BYD CO LTD -A | -2.3 |
| CHINA GREATWALL TECHNOLOGY-A | 7.8 |
| CONTEMPORARY AMPEREX TECHN-A | -0.7 |
| CAMBRICON TECHNOLOGIES-A | -5.7 |
| EOPTOLINK TECHNOLOGY INC L-A | -3.1 |
| FUJIAN SNOWMAN GROUP CO-A | 1.9 |
| GOTION HIGH-TECH CO LTD-A | 4 |
| ZIJIN MINING GROUP CO LTD-A | -3.7 |
| SHANGHAI ELECTRIC GRP CO L-A | -4 |
| LUXSHARE PRECISION INDUSTR-A | -2.3 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 7.19 versus 7.18 Friday
- CNY per EUR 8.16 versus 8.14 Friday
- Yield on 10-Year Government Bond 1.73% versus 1.72% Friday
- Yield on 10-Year China Development Bank Bond 1.71% versus 1.71% Friday
- Copper Price +0.01%
- Steel Price -0.99%
