Chinese food delivery group Meituan slips to 8-month low on weak outlook

** Shares of China's leading food delivery group Meituan 3690 fall as much as 5.5% to HK$122.3, their lowest levels since September 16, 2024

** Meituan on Monday reported a 46% rise in first-quarter net profit, but warned that the second quarter would likely be hit by increased competition in so-called "instant retail"

** UOB Kay Hian downgrades Meituan rating to "hold" from "buy" and cuts TP to HK$140 from HK$216

** "For 2025, we turn cautious on Meituan and expect to see margin pressure stemming from intense competition in the FD business" - UOB

** Citi maintains "buy" but trims TP to HK$192 from HK$204 saying Meituan guided 2Q25 core local commerce revenues to decelerate from 1Q25 and expects operating profit for core local commerce to decline significantly yoy

** Jefferies keeps "buy" but cut PT to HK$185 fron HK$215

** Hang Seng Consumption Index (.HSCGSI) rises 1.2%, Hang Seng Index HSI gains 0.1%

** YTD, stock down 14.7%