Citigroup: Meituan's brand Keeta is performing strongly in Saudi Arabia and is expected to catch up with or surpass the local second place. Maintain a buy rating.

According to Citigroup, Meituan's food delivery brand Keeta has successfully expanded to more cities in the past few months and continues to top the download charts in the Saudi app store, gaining a significant market share of orders. Analysts including Alicia Yap stated in a report that Keeta's attractiveness may have impacted the performance of its Saudi peers. If Keeta can continue to gain strong consumer momentum, it may catch up with or even surpass the second-ranked Jahez later this year. Jahez's total merchandise transaction volume in the first quarter of this year has slowed significantly. Meituan management has previously indicated that Keeta's development in Saudi Arabia is going smoothly, and the company expects to significantly increase investment in overseas markets by 2025 to drive growth and increase market share. The company maintains a buy rating on Meituan with a target price of HK$204.