MEITUAN-W (03690) shares advanced over 3% following the release of its second-quarter results, with the stock last trading up 2.26% at HK$79.25, on a turnover of HK$1.428 billion.

According to the company's 2026 second-quarter earnings report, revenue reached approximately RMB 104.643 billion, a year-on-year increase of 14.4%. Profit for the period surged 4.9-fold year-on-year to RMB 2.155 billion, while adjusted net profit climbed 69% to around RMB 2.524 billion.

Breaking down the segments, revenue from the core local commerce business grew 10.1% year-on-year to RMB 71.5 billion. The operating profit for this segment turned positive, hitting RMB 5.7 billion, largely driven by a significant improvement in the profitability of its on-demand delivery business. Meanwhile, the new initiatives segment posted revenue of RMB 33.1 billion, up 25% from the prior year.

According to China Merchants Securities, the positive turnaround in Q2 food delivery profitability underscores a clear path to earnings recovery as competitive dynamics ease. The firm also highlighted Meituan's continued edge in high-value user mindshare, order market share, and operational efficiency. Looking further ahead, the brokerage noted that the company's core business growth and competitive moats remain intact, with overseas expansion expected to broaden its growth potential.

Dongwu Securities commented that the key takeaway from the second quarter is the noticeable improvement in operating efficiency alongside sustained rapid revenue growth. The company has placed greater emphasis on order quality, user composition, and input-output efficiency, further validating the logic of profitability recovery in its core operations.