• The stock is up less than the Hang Seng Tech Index this year

• Sales growth for the December quarter might have slowed

Meituan’s results due later Friday will help assess if its share price upside is as promising as sell-side analysts suggest.

They estimate the stock will rise to HK$219.91 in the next year, 31% above the last closing price, according to data compiled by Bloomberg. That’s one of the biggest gaps among Chinese tech giants traded in Hong Kong.

While Meituan shares have rallied 11% this year, that’s much less than the 31% surge in the Hang Seng Tech Index as investors have favored companies more directly tied to China’s boom in artificial intelligence. Analysts estimate sales at the food-delivery giant increased almost 20% in the fourth quarter from the same period in 2023, which would be the smallest growth in more than two years, though they project an improved gross margin of 37%.

With the macro picture stabilizing, investors will focus on Meituan’s outlook for food delivery as well as clues on the competitive landscape and investments in new initiatives, said Thomas Chong, an analyst at Jefferies Financial Group Inc. JD.com Inc. launched its JD Takeaway platform in February, adding to an already crowded space.