HK/China Equity Long-Short

Osbert Tang, CFA

Equity Bottom-Up

Meituan is a Chinese technology company that operates a platform for local services, including on-demand food delivery, in-store services, consumer reviews, hotel and travel bookings, and instant retail. The company also offers bike sharing, e-moped sharing, and grocery delivery services. Meituan is headquartered in Beijing, China, and was founded in 2010.

<ul>
<li>Despite its recent rally, <a target="_blank">Meituan (3690 HK)</a> still lags the HSI YTD. For FY26-27F, it will be the sector's main growth driver. Its P/B is 1SD below the 5-year average.</li>
<li>It is disciplined in AI investments, focusing on operational efficiency, cost control, new business capabilities, and long-term strategic positioning. </li>
<li>Its portfolio of investments equals 9.5% of market capitalisation, and includes high-profile names like <a href="https://www.smartkarma.com/entities/moonshot-ai" target="_blank" data-smartkarma-citation="entities:46606:1" rel="noopener">Moonshot AI (MOONSHOTAI HK)</a>, <a href="https://www.smartkarma.com/entities/unitree-robotics" target="_blank" data-smartkarma-citation="entities:48008:1" rel="noopener">Unitree Robotics (UNITREE CH)</a>, etc.</li>
</ul>


Despite its recent rally, Meituan (3690 HK) still lags the HSI YTD. For FY26-27F, it will be the sector's main growth driver. Its P/B is 1SD below the 5-year average.
It is disciplined in AI investments, focusing on operational efficiency, cost control, new business capabilities, and long-term strategic positioning. 
Its portfolio of investments equals 9.5% of market capitalisation, and includes high-profile names like Moonshot AI (MOONSHOTAI HK), Unitree Robotics (UNITREE CH), etc.


2026 High Conviction Update: Meituan (3690 HK) - Disciplined AI Beneficiary

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

SK Holdings Co., Ltd. is a holdings company that is engaged in various industries including energy, chemicals, information technology, semiconductors, marketing, and services businesses in South Korea and internationally.

<ul>
<li>In this insight, I provide an updated SoTP valuation analysis of SK Inc (034730 KS) which I proposed as my 2026 High Conviction Idea on 4 December 2025.</li>
<li><em><strong>My updated sum-of-the parts (SoTP) analysis of SK Inc suggests implied NAV per share of 1,306,335 won per share which represents a 52% upside from current levels.  </strong></em></li>
<li>The biggest change in the valuation of SK Inc is its 32.1% stake in SK Square (402340 KS) which is now worth 80.4 trillion won.</li>
</ul>


In this insight, I provide an updated SoTP valuation analysis of SK Inc (034730 KS) which I proposed as my 2026 High Conviction Idea on 4 December 2025.
My updated sum-of-the parts (SoTP) analysis of SK Inc suggests implied NAV per share of 1,306,335 won per share which represents a 52% upside from current levels.  
The biggest change in the valuation of SK Inc is its 32.1% stake in SK Square (402340 KS) which is now worth 80.4 trillion won.


An Updated SoTP Valuation Analysis of SK Inc: 2026 High Conviction Idea

<ul>
<li>
<a href="https://www.smartkarma.com/entities/meituan-class-b" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> achieved a significant QoQ narrowing down in losses, with improvements at both the Core Local Commerce and New Initiatives segments.</li>
<li>Management appears positive towards the outlook as irrational subsidies have tamed and New Initiatives achieved better efficiency and economics.</li>
<li>The stock trades on 2.8x P/B (over 1SD below average) and the turnaround in next two years means PERs of 21.6x and 14.4x for FY27 and FY28 justified.</li>
</ul>



Meituan (3690 HK) achieved a significant QoQ narrowing down in losses, with improvements at both the Core Local Commerce and New Initiatives segments.
Management appears positive towards the outlook as irrational subsidies have tamed and New Initiatives achieved better efficiency and economics.
The stock trades on 2.8x P/B (over 1SD below average) and the turnaround in next two years means PERs of 21.6x and 14.4x for FY27 and FY28 justified.


2026 High Conviction Update: Meituan (3690 HK) - Seeing Positive Signs

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

GitLab Inc. designs and develops software solutions. The Company offers platform for authentication, authorization, devops score, audit, and value stream management. GitLab serves customers worldwide.

<ul>
<li>GitLab shares have materially underperformed the NASDAQ; GTLB shares down ~28% over the year versus a 14.5% gain on the NASDAQ and a 10.6% loss on the IGV.</li>
<li>Shares saw pressure early in the year because investors reassessed the company’s long-term growth profile in the context of the AI transition in software development.</li>
<li>The stock has since bottomed in the low $20s and gained ~44%. I continue to like GTLB for its superior gross margins, improving FCF and $400M in authorized share buyback.</li>
</ul>


GitLab shares have materially underperformed the NASDAQ; GTLB shares down ~28% over the year versus a 14.5% gain on the NASDAQ and a 10.6% loss on the IGV.
Shares saw pressure early in the year because investors reassessed the company’s long-term growth profile in the context of the AI transition in software development.
The stock has since bottomed in the low $20s and gained ~44%. I continue to like GTLB for its superior gross margins, improving FCF and $400M in authorized share buyback.


2026 High Conviction Update: GitLab Inc., Valuation Is Cheap But No Major Catalysts In Sight

<ul>
<li>
<a href="https://www.smartkarma.com/entities/meituan" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>'s FY25 result is at the low end of the loss range it indicated. However, gross and operating margins have signs of stabilisation in 4Q25. </li>
<li>We have already passed the trough of the Core Local Commerce as the government has stepped up anti-involution efforts, and losses and margins have improved QoQ.</li>
<li>Loss of New Initiatives has expanded QoQ, but Keeta in Saudi Arabia is breaking even sooner than expected, which is positive.</li>
</ul>



Meituan (3690 HK)'s FY25 result is at the low end of the loss range it indicated. However, gross and operating margins have signs of stabilisation in 4Q25. 
We have already passed the trough of the Core Local Commerce as the government has stepped up anti-involution efforts, and losses and margins have improved QoQ.
Loss of New Initiatives has expanded QoQ, but Keeta in Saudi Arabia is breaking even sooner than expected, which is positive.


2026 High Conviction Update: Meituan (3690 HK) - Still Convinced

2026 High Conviction Ideas
High Conviction Ideas going into 2026

2026 High Conviction Update: Meituan (3690 HK) - Disciplined AI Beneficiary

Meituan returned to profit in 2Q26 at Rmb2.2bn and also achieved positive UE for the delivery business, indicating the fading effects of irrational...

Osbert Tang, CFA

An Updated SoTP Valuation Analysis of SK Inc: 2026 High Conviction Idea

My updated sum-of-the parts (SoTP) analysis of SK Inc suggests implied NAV per share of 1,306,335 won per share which represents a 52% upside from...

Douglas Kim

2026 High Conviction Update: Meituan (3690 HK) - Seeing Positive Signs

Meituan sees QoQ loss reduction with positive outlook on improved efficiency and economics. The stock trades on 1SD below average P/B but this is...

Osbert Tang, CFA

2026 High Conviction Update: GitLab Inc., Valuation Is Cheap But No Major Catalysts In Sight

GitLab is my 2026 high conviction idea in the U.S. software sector. In my follow-up piece, I provide a brief update, focus on investor concerns...

Andrei Zakharov

2026 High Conviction Update: Meituan (3690 HK) - Still Convinced

Meituan's FY25 results show signs of stabilisation in margins with losses at the low end of the profit warning, indicating improvement in core...

Osbert Tang, CFA

2026 High Conviction Update: Meituan (3690 HK) - Disciplined AI Beneficiary

Meituan returned to profit in 2Q26 at Rmb2.2bn and also achieved positive UE for the delivery business, indicating the fading effects of irrational...

Osbert Tang, CFA

An Updated SoTP Valuation Analysis of SK Inc: 2026 High Conviction Idea

My updated sum-of-the parts (SoTP) analysis of SK Inc suggests implied NAV per share of 1,306,335 won per share which represents a 52% upside from...

Douglas Kim

2026 High Conviction Update: Meituan (3690 HK) - Seeing Positive Signs

​Meituan sees QoQ loss reduction with positive outlook on improved efficiency and economics. The stock trades on 1SD below average P/B but this is...

Osbert Tang, CFA

2026 High Conviction Update: GitLab Inc., Valuation Is Cheap But No Major Catalysts In Sight

GitLab is my 2026 high conviction idea in the U.S. software sector. In my follow-up piece, I provide a brief update, focus on investor concerns...

Andrei Zakharov

2026 High Conviction Update: Meituan (3690 HK) - Still Convinced

​Meituan's FY25 results show signs of stabilisation in margins with losses at the low end of the profit warning, indicating improvement in core...

Osbert Tang, CFA

Meituan sees QoQ loss reduction with positive outlook on improved efficiency and economics. The stock trades on 1SD below average P/B but this is...

Meituan's FY25 results show signs of stabilisation in margins with losses at the low end of the profit warning, indicating improvement in core...