Meituan is expected to show strong performance in 3Q23, with positive indicators despite China's weak economic growth. 

City traffic has surpassed 2019 levels, aiding the stable growth of the food delivery sector. 

Meituan and Ele.me's total Gross Transaction Volume (GTV) in the on-demand delivery sector rose by 21.0% year-over-year (Y/Y) in 3Q23 and 20.0% in October 2023. 

Factors contributing to Meituan's improved margins include scaling back group-buy business, reduced marketing spending, lower rider costs due to increased supply, and better performance in the hotel and lodging sector. 

However, competition is intensifying, particularly from ByteDance and PDD, with the latter outperforming Meituan in group-buy business in 3Q23. 

Meituan's revenue is projected to grow 23.1% Y/Y to RMB 77.08B in 3Q23, exceeding consensus estimates. 

The company's food delivery GTV and order numbers are also expected to see significant growth. Ele.me is also showing growth, albeit at a slower rate compared to Meituan.