Keeta has entered Kuwait, firmly occupying the top spot in the APP download rankings for dining in Saudi Arabia and Qatar, while Meituan focuses on "domestic battles and overseas expansion."

As competition in the domestic market intensifies, Meituan is extending its strategy overseas. The latest update shows that Meituan officially launched the Keeta service in Kuwait at 11 AM local time on September 15.

According to news from the trading platform Chase, a research report released by Citigroup on the 15th pointed out that this expansion comes less than a month after its entry into the Qatari market (August 19), demonstrating its rapid penetration into other markets of the Gulf Cooperation Council (GCC). Kuwait is the third Middle Eastern market that Keeta has entered, following Saudi Arabia and Qatar.

According to Citigroup's data, as of September 15, Keeta has topped the food delivery app download charts in Kuwait's Apple iOS and Google Play app stores. In the nearly one year since its entry into the Saudi market and its recent entry into the Qatari market, Keeta has maintained its position as the top downloaded app in its category.

Citigroup analysts noted in the report that Meituan's commitment to expanding into overseas markets does not seem to have changed due to fierce competition in the domestic market. Analysts expect that, with its mature operating model and subsidy strategy, Keeta is likely to quickly grow into one of the top two to three players in the Kuwaiti market within a few months. Citigroup maintains a "Neutral/High Risk" rating on it, with a target price of HKD 133.00, indicating a 33% upside potential from the current stock price.

Rapid Expansion, Keeta Adds Another City to Its Middle Eastern Map

Keeta's entry will bring a new competitive landscape to Kuwait's local food delivery market. Currently, the main players in this market include Talabat, Deliveroo, Jahez, and Cari.

The report indicates that Meituan chose Kuwait due to its high per capita GDP, high food delivery penetration rate, and consumer demand for high-quality services. The service model launched by Keeta in Kuwait is similar to that in Qatar, rapidly capturing the market through highly attractive subsidy strategies, including offering coupons worth up to 10 Kuwaiti Dinars (approximately USD 30), free delivery services, and a "On-Time Guarantee." Additionally, major chain brands such as Burger King, McDonald's, and Starbucks are prominently displayed as popular merchants on Keeta's homepage.

Kuwait's food delivery market already has major players like Talabat, Deliveroo, Jahez, and Cari. However, Citigroup analysts expect that, with its strong operational capabilities and aggressive market strategies, Keeta is likely to quickly grow into one of the top two to three players in the market within just a few months of entering Kuwait.

The report further predicts Keeta's subsequent expansion route. Citigroup's research report forecasts that Keeta is likely to enter the UAE market before the end of this year. Additionally, analysts expect that Meituan may further expand Keeta's footprint into Latin America in the coming months, potentially piloting in one or two cities in Brazil.

Citigroup's Rating: "Neutral/High Risk," but Optimistic About Future Valuation

Despite the rapid momentum of overseas expansion, Citigroup still gives Meituan a "Neutral/High Risk" rating, along with a "short-term bearish" view that will expire on September 25, 2025, reflecting market concerns about the current intense competitive environment.

However, in terms of valuation, the report shows significant potential value. Citigroup uses the Sum of the Parts (SOTP) method for valuation, providing a target price of HKD 133.00. Compared to the stock price of HKD 97.35 at the time of the report, this implies an expected return of up to 36.6%. The main components of its valuation are as follows:

• Delivery and Flash Purchase Business: Valued at HKD 399 billion with a price-to-sales ratio of 1.8x.
• In-store, Hotel, and Travel Business: Valued at HKD 259 billion with a 12x adjusted net profit.
• New Business (excluding community group buying): Valued at HKD 23.9 billion with a price-to-sales ratio of 0.5x.
• Community Group Buying Retail (including Meituan Preferred): Valued at HKD 37.8 billion with a price-to-sales ratio of 0.5x