Meituan-W Surges Over 6% in Intraday Trading, Gains Over 20% for the Month; Citi Maintains "Buy" Rating

Deep News07-15 12:01

Shares of Meituan-W (03690) surged more than 6% during intraday trading, extending their monthly gain to over 20%. At the time of writing, the stock was up 4.92%, trading at HK$83.10 with a turnover of HK$4.17 billion.

On July 6, Meituan announced the official open-sourcing of the entire LongCat-2.0 model weights, inference engine, and core technical documentation. This model is the industry's first trillion-parameter large model to have completed full-process training and inference on a 50,000-card domestic computing cluster. It boasts a total of 1.6 trillion parameters, a pre-training data scale exceeding 30 trillion tokens, and native support for a 1 million token context length.

Citi released a research report stating that the open-sourcing of the trillion-parameter LongCat-2.0 model by Meituan-W (03690) is a strategic move that will further solidify its leadership in the local lifestyle services market. The model's advanced Agentic architecture is expected to enhance internal R&D efficiency and attract external developers. Citi maintains its "Buy" rating and HK$113 target price for Meituan.

The report indicated that by leveraging its vast and proprietary offline transaction and operational data, Meituan can provide unique AI-driven marketing and business insights for small and medium-sized enterprise merchants. The bank believes this will create a competitive moat, differentiating Meituan from other large language model providers and deepening its relationships with both merchants and consumers. Citi believes Meituan's model possesses a distinct competitive advantage due to the proprietary data from its rider network and accumulated experience in order dispatch algorithms.

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