The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0810 GMT - Fierce domestic competition may weigh on Meituan's earnings outlook, according to HSBC analysts in a commentary. The Chinese tech company's food delivery revenue growth could lag behind order growth, pressuring the earnings outlook as well as unit economics--an indicator that measures profitability per order in the delivery industry, the analysts say. They add that this drag may diminish over time as subsidy pressure improves from 2026 onwards. HSBC keeps Meituan's 2025 food delivery topline estimate largely unchanged but trims 2025-2027 food delivery operating profits by 3%-10% on weaker unit economics. HSBC maintains a buy rating, and trims the target price to HK$160.00 from HK$165.00. Shares are last traded at HK$132.10. (tracy.qu@wsj.com)

0646 GMT - Meituan's heavy subsidies for its food delivery business drives orders growth but weighs on its earnings outlook, HSBC analysts say in a research note. The orders volume growth may be more resilient than HSBC's expectations as the market grows faster amid heavy subsidies. But Meituan's food delivery revenue growth could lag its order growth. They note that this drag on its earnings could diminish over time as subsidies are reduced from 2026 onwards, they say. HSBC trims Meituan's 2025-2027 food-delivery operating profit forecast by 3%-7%. HSBC maintains a buy call on Meituan but lowers its target price to HK$160.00 from HK$165.00. Shares are last at HK$132.00. (sherry.qin@wsj.com)

0338 GMT - WiseTech Global's US$2.1 billion acquisition of U.S.-listed e2open could be up to 10% accretive to the logistics-software provider's fiscal 2027 EPS, Goldman Sachs analysts say. They assume US$60 million of cost synergies, compared with WiseTech's guidance of at least US$50 million, but don't incorporate any revenue synergies into their forecasts. The GS analysts accept WiseTech's contention that combined earnings margins will eventually rebound back above 50%, and see debt leverage of 1.9 times Ebitda by the end of fiscal 2027. GS cuts its target price 2% to A$126.00 and keeps a buy rating on the stock, which is up 2.3% at A$107.16. (stuart.condie@wsj.com)

0222 GMT - Erajaya Swasembada is expected to benefit from launch of iPhone 16 in Indonesia and its non-iPhone businesses, UOB Kay Hian's Paula Ruth says in a research report. This launch in 2Q could drive improvement in the mobile device retailer's quarterly performance compared with 1Q, the analyst says. Also, the brokerage remains optimistic about the Indonesian mobile device retailer's capability in gradually diversifying into non-iPhone businesses. Strong demand has been indicated from high traffic at the company's recently opened 'CHAGEE' tea bar, the analyst notes. The brokerage raises the stock's target price to IDR670.00 from IDR480.00 with an unchanged buy rating. Shares are 2.6% higher at IDR585.00. (ronnie.harui@wsj.com)

0221 GMT - Singtel's widening of its asset-recycling program will help cushion any impact of higher spending on returns, S&P Global Ratings analysts write in a report. Singtel has a strong record in executing asset monetization, and with its new share buyback program, total shareholder returns will likely reach an estimated S$3.4 billion-S$3.6 billion annually for fiscal years 2026 and 2027, up from S$2.8 billion in fiscal year 2025 ending March, they write. Spending should remain high in areas like data centers and artificial intelligence, they add. Such asset monetization from noncore assets or minority stakes in associates don't affect Singtel's competitiveness, S&P says. (kimberley.kao@wsj.com)

0149 GMT - Apple and its iPhone supply chain could be one of the biggest beneficiaries if a trade deal between the U.S. and India is announced in the coming weeks, Wedbush analysts led by Daniel Ives say in a report. Despite Trump's tariff threats against Apple products, the move to quickly pivot iPhone production and assembly to India was probably the smartest move Apple could make, they say. Moving iPhone production in the U.S. is a "non-starter" as it would drive iPhone prices to around $3,500 and would take around 5-10 years, Wedbush adds. "With Cook being 10% politician and 90% CEO... we believe Apple will continue to navigate this complex tariff situation in a game of negotiations with the Trump Administration," Wedbush adds. (kimberley.kao@wsj.com)

0130 GMT - WiseTech Global's new US$3 billion debt facility leaves the logistics-software provider with capacity for bolt-on acquisitions should the opportunity arise, Morgan Stanley analysts say. They tell clients in a note that WiseTech should have US$700 million in additional liquidity following its acquisition of e2open. The US$2.1 billion acquisition of e2open increases the analysts' conviction that Australia's WiseTech can achieve their medium- to long-term forecasts. MS keeps an overweight rating and A$140.00 target price on the stock, which is up 1.6% at A$106.44. (stuart.condie@wsj.com)

0107 GMT - Telekom Malaysia's 10-year deal to provide 5G backhaul services to U Mobile is expected to have minimal earnings impact, likely contributing just 1.8% to 2026 revenue, TA Securities analyst Chan Mun Chun says in a note. Still, he sees the telco well-positioned to execute the job effectively, backed by its vast 740,000 km fiber network and experience from its ongoing 2 billion ringgit 5G support deal with Malaysian 5G network operator Digital Nasional. TA maintains a buy rating on Telekom with a target price of MYR8.30. Shares are 0.3% higher at MYR6.88. (yingxian.wong@wsj.com)

0019 GMT - WiseTech Global's bull at Jefferies is confident that the logistics-software provider can successfully integrate its largest-ever acquisition while still focusing on other operations. Analyst Roger Samuel points out that e2open, which WiseTech is buying for US$2.1 billion, has itself made 13 acquisitions. This means that its employees have experience of integration processes, Samuel writes in a note. WiseTech's product development and acquisition teams are decoupled from each other, Samuel adds, allowing both to stay strictly focused on immediate projects. Jefferies has a buy rating and A$115.50 target price on the stock, which is up 2.7% at A$107.59. (stuart.condie@wsj.com)

0927 GMT - The planned merger of Hygon Information and Dawning Information Industry could combine resources and facilitate each other's business, Citi analysts say in a note. Chinese chip maker Hygon on Sunday night said it plans to acquire smaller peer Dawning by issuing new A shares to all Dawning shareholders. Dawning, which has been on the U.S. Entity List since 2019, has seen its server shipments plunge to 8,600 units in 2024 from 303,000 units at its 2018 peak due to hardware constraints, the analysts say, citing IDC data. Dawning has shifted its focus to CPU and GPU board design and production from server manufacturing, they note. Thus, the restructuring could help Dawning enhance cooperation with CPU and GPU maker Hygon, and enable broader collaboration with server manufacturers, they add. (sherry.qin@wsj.com)

0851 GMT - Lenovo Group's PC margin will likely be pressured in the near term by tariffs, CGS International analyst Ray Kwok says in a research note. CGS International expects Lenovo's PC pretax income margin to be roughly flat at 7.2% in fiscal 2026. The PC maker could suffer from incremental U.S. tariff costs by accelerating its production relocation to Vietnam from China and raising its PC pricing in the U.S. to reflect the tariff, it adds. Its PC revenue could rise 3% in fiscal 2026 due to a commercial demand recovery and higher average selling prices on better product mix, the analyst says. CGS International maintains its add call on Lenovo but lowers the target price to HK$13.80 from HK$15.00. Shares last ended at HK$9.29. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

May 27, 2025 04:20 ET (08:20 GMT)

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