China Merchants Securities International said Meituan's LongCat-2.0 model showed that domestic computing power can support end-to-end training and inference for trillion-parameter models.
According to Jin10, the firm said Meituan's open-sourcing of its Infra and engine as well as model weights would accelerate the formation of a closed-loop domestic AI ecosystem and carry positive significance for China’s domestic model industry.
China Merchants Securities International maintained an “overweight” rating on Meituan and kept its target price at HK$111.
The firm said the LongCat-2.0 open-source move marked a key milestone as Meituan’s AI efforts shift from an investment phase to a capability validation phase. It added that if subsequent model iteration and commercialization exceed expectations, Meituan could see continued valuation re-rating, and the development could also improve efficiency in Meituan’s core businesses.
The firm listed potential catalysts including further model and product iteration and commercialization, improved supply of domestic chips, an improved competitive landscape that supports profit recovery in core businesses, and higher shareholder returns.
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