Keeta lands in Kuwait, firmly tops the restaurant app download charts in Saudi Arabia and Qatar. Meituan is "fighting domestically, expanding overseas."

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As competition intensifies in the domestic market, Meituan is extending its strategy overseas. The latest developments show that at 11:00 am local time on September 15, Meituan officially launched its Keeta service in Kuwait.

According to ZF Trading Desk, a research report released by Citi on the 15th pointed out that this expansion comes less than a month after its entry into the Qatar market (August 19), demonstrating its rapid pace in penetrating other GCC markets. Kuwait is the third Middle Eastern market Keeta has entered, following Saudi Arabia and Qatar.

According to Citi's data, as of September 15, Keeta has topped the app downloads list in the food delivery category in both Apple’s iOS and Google's Google Play app stores in Kuwait. In the Saudi market, which it has been operating in for nearly a year, as well as recently entered Qatar, Keeta also maintains the top position among similar apps in download volume.

Citi analysts pointed out in the report that Meituan’s commitment to overseas market expansion does not appear to have changed despite fierce domestic competition. The analysts predict that, with its advanced operational model and subsidy strategies, Keeta is likely to quickly grow into one of the top two or three players in the Kuwaiti market within a few months. Citi maintains a “Neutral/High Risk” rating, with a target price of HKD 133.00, representing a 33% upside from the current share price.

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

Keeta’s entry will bring new competition to the local food delivery market in Kuwait. The major players in this market currently include Talabat, Deliveroo, Jahez, and Cari.

The report highlights that Meituan chose Kuwait because of its high per capita GDP, high food delivery penetration rate, and consumer demand for high-quality services. The service model Keeta launched in Kuwait is similar to its Qatar model, quickly capturing market share through highly attractive subsidy strategies, including offering coupons worth up to 10 Kuwaiti dinars (about $30 USD), free delivery, and an "On-Time Guarantee" promise. In addition, large chain brands like Burger King, McDonald’s, and Starbucks are already featured on the Keeta homepage as popular merchants.

The Kuwaiti food delivery market already has major players such as Talabat, Deliveroo, Jahez, and Cari. However, Citi analysts predict that with its strong operational capabilities and aggressive market strategies, Keeta is likely to quickly grow into one of the top two or three players in the market within just a few months after its entry into Kuwait.

The report further forecasts Keeta’s follow-up expansion roadmap. Citi’s report predicts that Keeta is very likely to launch in the UAE market before the end of this year. Moreover, analysts expect that Meituan may further expand Keeta’s presence into Latin America within the next few months, possibly piloting in one or two cities in Brazil.

Citi Rating: “Neutral/High Risk”, But Bullish on Future Valuation

Despite the rapid overseas expansion, Citi still gives Meituan a “Neutral/High Risk” rating, accompanied by a “short-term bearish” view valid until September 25, 2025, reflecting market concerns over the current fierce competitive environment.

However, in terms of valuation, the report shows significant potential value. Citi uses the sum-of-the-parts (SOTP) approach to give a target price of HKD 133.00. Relative to the share price of HKD 97.35 at the time the report was issued, this represents up to a 36.6% expected return. The main components of the valuation are as follows:

Food Delivery and Instashopping Business: 1.8x Price-to-sales ratio, valued at HKD 399 billion.In-store, Hotel, and Travel Business: 12x adjusted net profit, valued at HKD 259 billion.New Businesses (excluding Community Group Buying): 0.5x Price-to-sales ratio, valued at HKD 23.9 billion.Community Group Buying Retail (including Meituan Select): 0.5x Price-to-sales ratio, valued at HKD 37.8 billion.

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