Group 1 - Meituan-W has received net buying from southbound funds for three consecutive days, with a cumulative net buying amount of 1.182 billion HKD and a stock price increase of 2.14% [1] - On February 28, the total trading volume of active stocks through the Hong Kong Stock Connect reached 73.84 billion HKD, with a net buying amount of 1.589 billion HKD [1] - On the same day, Meituan-W's trading volume through the Hong Kong Stock Connect was 4.115 billion HKD, with a net buying amount of 0.016 billion HKD, indicating continued investor interest [1]

Investment Rating - The investment rating for Meituan-W (03690) is "Buy" (maintained) [1] Core Views - The report emphasizes the potential of AI empowerment to enhance both customer experience and operational efficiency. Meituan's strategic upgrade to "Retail + Technology" aims to integrate technological capabilities deeply into local life services and retail businesses, focusing on areas such as instant retail, smart supply chains, and unmanned delivery [4][10] Summary by Sections Financial Performance - For 2023, Meituan's revenue is projected at 276,563 million, with a year-on-year growth of 26%. The adjusted net profit is expected to be 23,253 million, reflecting a significant increase of 730% [13] - Revenue forecasts for 2024, 2025, and 2026 are 336,699 million, 385,681 million, and 435,161 million respectively, with growth rates of 22%, 15%, and 13% [10] - Adjusted net profit forecasts for the same years are 42,305 million, 52,213 million, and 70,790 million, with growth rates of 82%, 23%, and 36% [10] Business Strategy - Meituan has accelerated its layout in B-end SaaS since 2016, providing comprehensive solutions for merchants in management, marketing, and supply chain [5] - The company is focusing on AI's role in enhancing operational efficiency in the restaurant SaaS sector, drawing parallels with successful overseas examples [5][6] - The report highlights Meituan's investment in robotics and automation technologies, with over 30 investments in related companies since 2021 [9] Market Positioning - Meituan's strategic focus on AI and technology integration is expected to create a competitive edge in the retail sector, particularly in enhancing customer experience through personalized services and operational efficiencies [7][10] - The report notes the significant advancements in Meituan's unmanned delivery capabilities, including the development of autonomous driving technology and drone delivery services [8][9] Future Outlook - The report maintains a positive long-term outlook on Meituan's operational and organizational capabilities, emphasizing the importance of its "extreme execution" strategy in the retail sector [10] - The anticipated acceleration of generative AI commercialization and macroeconomic improvements are expected to positively impact Meituan's business performance [6][10]

Investment Rating - The investment rating for Meituan-W (03690) is "Buy" (maintained) [1] Core Views - The report emphasizes the potential of AI empowerment to enhance both customer experience and operational efficiency. Meituan's strategic upgrade to "Retail + Technology" aims to integrate technological capabilities deeply into local life services and retail businesses, focusing on instant retail, smart supply chains, and unmanned delivery [4][10] Summary by Sections Financial Performance - For 2023, Meituan's revenue is projected at 276,563 million, with a year-on-year growth of 26%. The adjusted net profit is expected to be 23,253 million, reflecting a significant increase of 730% [13] - Revenue forecasts for 2024, 2025, and 2026 are 336,699 million, 385,681 million, and 435,161 million respectively, with growth rates of 22%, 15%, and 13% [10][13] - Adjusted net profit predictions for the same years are 42,305 million, 52,213 million, and 70,790 million, with growth rates of 82%, 23%, and 36% [10][13] Business Strategy - Meituan has accelerated its layout in B-end SaaS since 2016, providing comprehensive solutions for merchants in management, marketing, and supply chain [5] - The company is focusing on AI's role in enhancing operational efficiency in the restaurant SaaS sector, drawing parallels with successful overseas examples [5][6] - Meituan's "QianNiuHua" system offers a full-process digital solution for local retailers, aiming to reduce costs and improve efficiency [6] Technological Advancements - The report highlights Meituan's commitment to technology innovation, particularly in unmanned delivery and AI applications, which are expected to significantly enhance operational efficiency [7][9] - The company has made substantial investments in robotics and automation technologies, with over 30 investments in related companies since 2021 [9] Market Position - Meituan's core local business segment generates 57% of its revenue from commission and delivery marketing services, indicating a strong market presence [9] - The report suggests that AI can significantly improve advertising efficiency, as evidenced by the performance of major overseas companies [9]

Investment Rating - The investment rating for Meituan-W (03690.HK) is "Outperform the Market" (maintained) [2][6][22] Core Viewpoints - Meituan's core competitiveness in the food delivery sector remains strong, with no significant competitors observed in the short term. The entry of new players may provide good buying opportunities for the market [6][22] - The report highlights DoorDash's strong growth and AI initiatives, which could serve as a reference for Meituan's own AI strategies [4][10] - The impact of JD's entry into the food delivery market is expected to be limited, as JD's focus is on high-quality dining merchants, which may not significantly disrupt Meituan's market position [5][21] Summary by Sections Company Overview - DoorDash has become the absolute leader in the U.S. food delivery market, achieving a market share of 63% as of November 2024, with revenues of $10.72 billion in 2024, representing a 24% year-on-year growth [4][8][7] - In Q4 2024, DoorDash reported revenues of $2.87 billion, a 25% increase year-on-year, and a GAAP net profit of $141 million, compared to a loss of $154 million in the same period last year [8][4] AI Initiatives - DoorDash has been actively exploring AI applications, including an AI voice ordering service launched in August 2023, which enhances restaurant operational efficiency and sales [10][13] - The introduction of AI tools like DashAI and SafeChat+ aims to optimize user experience and improve communication safety between customers and delivery personnel [14][10] Competitive Landscape - JD's entry into the food delivery market is characterized by a focus on high-end dining merchants, which may not significantly impact Meituan's existing customer base and market share [5][21] - The report suggests that JD's food delivery service is more of an auxiliary feature within its instant retail strategy, and its impact on Meituan is expected to be limited in the current stable market environment [21][5] Financial Projections - The revenue forecasts for Meituan for 2024, 2025, and 2026 are projected at 338.2 billion, 391.4 billion, and 445.7 billion yuan respectively, with adjusted net profit estimates of 43 billion, 52.2 billion, and 58.5 billion yuan [6][22] - The corresponding price-to-earnings ratios are expected to be 23, 19, and 17 times for the respective years [6][22]

Investment Rating - The investment rating for Meituan-W (03690.HK) is maintained at "Outperform the Market" [4][11]. Core Views - JD's entry into the food delivery market is seen as a supportive business for JD Daojia, with limited resource allocation from the group, which will not significantly impact Meituan's core competitiveness in food delivery [3][5]. - Meituan's strong market position in the food delivery sector is highlighted, with no significant competitors observed at present [4][11]. Summary by Sections Company Overview - JD's food delivery service launched a recruitment campaign for "quality dine-in restaurant merchants," offering zero commission for merchants who join by May 1, 2025 [2]. Market Analysis - JD's food delivery is primarily targeting top chain merchants, which have limited impact on Meituan's overall advertising and commission contributions [3][11]. - The penetration rate of JD's main platform and Daojia is significantly lower compared to Meituan's, indicating a weaker user mindset towards near-field retail and food delivery [3][7]. Financial Forecasts - Revenue forecasts for Meituan for 2024-2026 are adjusted to CNY 338.2 billion, CNY 391.4 billion, and CNY 445.7 billion, reflecting a slight decrease of -0.1% for 2024 and increases of +0.6% for 2025 and 2026 [4][11]. - Adjusted net profit forecasts for the same period are CNY 43 billion, CNY 52.2 billion, and CNY 58.5 billion, with minor adjustments of 0.0%, -0.2%, and -0.3% respectively [4][11]. Valuation - The target price for Meituan is set between HKD 185 and HKD 203, indicating an upside potential of 20% to 32% from the current price [4][11].

Investment Rating - The investment rating for Meituan-W (03690) is "Buy" [8] Core Views - Meituan is a leader in local lifestyle services, with stable growth in food delivery, optimized in-store competition, and significant growth in flash purchase services [1] - The report anticipates that advertising revenue will enhance user experience (UE) optimization, driving profitability in the food delivery segment [2][3] - The competition with Douyin in the in-store business is expected to stabilize, with Meituan maintaining a strong user base and merchant resources [5][6] - Flash purchase services are projected to accelerate penetration into lower-tier markets, with significant growth in order volume [7][12] Summary by Sections 1. Delivery Business - Healthy growth in food delivery orders is driven by high penetration and favorable weather conditions, with expectations for advertising revenue to enhance UE [2] - The potential for increased profitability in food delivery lies in improving the advertising monetization rate [3] - There remains room for growth in order volume through repeat purchases and promotional strategies targeting both high and low-tier cities [3][4] 2. In-store Business - The in-store travel and dining segment has ample growth potential, with a competitive landscape that allows for differentiated strategies [5] - Meituan's user mindset and merchant resource base are solid, maintaining a competitive edge against Douyin [6] 3. Flash Purchase Business - The flash purchase segment is expanding rapidly, with a focus on potential categories and deeper market penetration [7][12] - The model of "flash warehouses" is particularly suited for lower-tier markets, enhancing order volume significantly [12] 4. Financial Projections - Revenue forecasts for 2024, 2025, and 2026 are projected at CNY 337.01 billion, CNY 390.99 billion, and CNY 449.64 billion, respectively, with year-on-year growth rates of 21.78%, 16.02%, and 15.00% [15][20] - Adjusted net profit is expected to reach CNY 431.71 billion, CNY 540.59 billion, and CNY 715.64 billion for the same years, reflecting substantial growth [15][20] 5. Valuation and Target Price - The target market capitalization for Meituan is set at CNY 1,081.2 billion, with an expected upside of approximately 17% based on a 20X NON-IFRS PE valuation for 2025 [16]

Investment Rating - The report maintains a "Buy" rating for Meituan-W (03690) with a 6-month target price [1] Core Views - Meituan's Q3 2024 revenue and profits exceeded Bloomberg consensus estimates [1] - Revenue: 93.6 billion RMB, 1.7% above consensus [1] - EBIT: 13.7 billion RMB, 41.0% above consensus [1] - Adjusted net profit: 12.8 billion RMB, 10.1% above consensus [1] Business Segment Performance Core Local Commerce - Revenue: 69.4 billion RMB, 1.5% above consensus [1] - Delivery service: 27.8 billion RMB [1] - Commission income: 26.1 billion RMB [1] - Online marketing: 13.4 billion RMB [1] - Operating profit: 14.6 billion RMB, 13.7% above consensus [1] Food Delivery - On-demand delivery orders grew 14.5% YoY [1] - Improved operational efficiency and user experience for Pinhaofan [1] - Expanded brand satellite stores with comprehensive online support [1] Meituan Instant Retail - User base and purchase frequency achieved double-digit YoY growth [1] - Increased night orders and faster growth in lower-tier markets [1] - Expanded Meituan Instant Retail warehouses to more lower-tier markets [1] In-store, Hotel & Travel - Order volume grew over 50% YoY [1] - Record high annual transacting users and active merchants [1] - Domestic hotel room nights showed steady growth [1] - "Shen Membership" program expanded nationwide [1] New Initiatives - Revenue: 24.2 billion RMB, 3.9% above consensus [1] - Operating loss: 1.03 billion RMB, 44.0% better than consensus [1] - Meituan Select continued to narrow losses quarter-over-quarter [1] - Other new initiatives achieved collective profitability in Q3 [1] Financial Projections - Revenue forecasts for 2024-2026: 3,363/3,880/4,336 billion RMB [1] - Non-IFRS net profit forecasts for 2024-2026: 417/516/611 billion RMB [1] Competitive Advantages - Strong merchant base and decades of accumulated user reviews [1] - Solid barriers in food delivery business [1] - Clear external competitive landscape [1] - Continuous improvement in core local commerce profitability [1] - Successful reduction of losses in new initiatives [1]

Investment Rating - The report does not explicitly mention the investment rating for Meituan-W (3690 HK) [2][3] Core Views - Meituan reported 3Q24 revenue of RMB 93 6 billion, a YoY increase of 22 4% [3] - The company's core local commerce segment saw operating profit grow by 44 4% to RMB 14 6 billion, with an operating margin of 21 0%, up 3 5 percentage points YoY [4] - Meituan's new business segment achieved revenue of RMB 24 2 billion, a YoY increase of 28 9%, with operating losses narrowing by 79 9% to RMB 1 0 billion [4] - The company's cash and cash equivalents stood at RMB 42 5 billion as of September 30, 2024 [3] Operational Highlights - Meituan's instant delivery transaction volume reached 7 08 billion orders in 3Q24, a YoY increase of 14 5% [3] - Meituan Flash Delivery expanded to more lower-tier markets, with major retailers accelerating their presence [4] - The domestic hotel room nights continued to grow steadily, with the company collaborating with suppliers to offer more diverse options [4] - Meituan Youxuan's losses continued to narrow sequentially, while other new businesses achieved profitability as a whole in 3Q24 [4] - Keeta was officially launched in Riyadh, Saudi Arabia in October [4] Financial Performance - Meituan's total expenses in 3Q24 were RMB 26 0 billion, with an expense ratio of 27 83%, down 4 55 percentage points YoY [4] - Sales and marketing expenses increased by 6 2% to RMB 18 0 billion, but the expense ratio decreased by 2 9 percentage points to 19 2% [4] - R&D investment remained stable at RMB 5 3 billion, with the expense ratio decreasing by 1 3 percentage points to 5 7% [4] - Administrative expenses increased by 10 2% to RMB 2 8 billion, with the expense ratio remaining stable at 3 0% [4] - The company's net cash flow from operating activities was RMB 15 2 billion in 3Q24 [4] Financial Projections - Meituan's revenue is expected to grow from RMB 276 7 billion in 2023 to RMB 450 2 billion in 2026, with a CAGR of 14 43% [5] - Net profit is projected to increase from RMB 13 9 billion in 2023 to RMB 56 7 billion in 2026, with a CAGR of 23 20% [5] - The company's gross margin is forecasted to remain stable around 38 23% to 38 97% from 2024 to 2026 [5] - Return on equity is expected to be around 22 42% to 22 75% from 2024 to 2026 [5]

Investment Rating - Buy rating maintained for Meituan-W (03690) [2] Core Views - Meituan's 3Q24 revenue reached 935.77 billion yuan (YoY +22%), slightly exceeding Bloomberg consensus by 1.7% [2] - Adjusted EBITDA was 145.29 billion yuan (YoY +135%), 9.0% above Bloomberg consensus [2] - Adjusted net profit stood at 128.29 billion yuan (YoY +124%), 10.1% above Bloomberg consensus [2] - Operating profit surged to 136.85 billion yuan (YoY +308%), 41% above Bloomberg consensus [2] Segment Performance Core Local Commerce - Revenue: 693.73 billion yuan (YoY +20%), 1.5% above Bloomberg consensus [2] - Operating profit: 145.82 billion yuan (YoY +44%), 13.7% above Bloomberg consensus [2] - Operating margin improved by 3.5 percentage points to 21.0% [2] - Instant delivery orders grew 14.5% YoY to 7.1 billion, with daily orders reaching 77.17 million [2] New Initiatives - Revenue: 242.04 billion yuan (YoY +29%), 3.9% above Bloomberg consensus [2] - Operating loss narrowed to 10.26 billion yuan (YoY +80%), 42.4% above Bloomberg consensus [2] - Meituan Flash Shopping daily orders exceeded 10 million, with peak orders reaching 16 million during Qixi Festival [2] - Flash warehouses surpassed 30,000, covering multiple consumer categories [2] In-store, Hotel & Travel - Order volume grew over 50% YoY [2] - Annual transacting users and active merchants reached record highs [2] - "Hotel + X" cross-selling strategy enhanced supply diversification [2] Financial Projections - 2024-2026 revenue forecast: 3,367/3,857/4,352 billion yuan (previous: 3,344/3,889/4,421 billion yuan) [4] - 2024-2026 adjusted net profit forecast: 423/521/707 billion yuan (previous: 386/522/698 billion yuan) [4] - Revenue growth rates: 22%, 15%, 13% for 2024-2026 respectively [4] - Adjusted net profit growth rates: 82%, 23%, 36% for 2024-2026 respectively [4] Key Financial Metrics - 2024E revenue: 3,366.99 billion yuan (YoY +22%) [6] - 2024E adjusted net profit: 423.05 billion yuan (YoY +82%) [6] - 2024E EPS: 5.71 yuan [6] - 2024E P/E ratio: 19x [6] Strategic Initiatives - Diversified supply through initiatives like Pinhaofan, Shenqiangshou, and brand satellite stores [2] - Merchant support measures including 6-12 month commission rebates and 1 billion yuan subsidies [2] - AI-powered location services for restaurant merchants [2] - Expansion of flash warehouses to 100,000 by 2027, targeting 200 billion yuan market size [2]

Investment Rating - The report maintains a "Buy" rating for Meituan with a target price of 215.76 HKD [2][12][11] Core Insights - Overall performance exceeded expectations with Q3 2024 revenue of 936 billion CNY, a year-on-year increase of 22.4%, surpassing Bloomberg's consensus estimate of 920 billion CNY [1] - Adjusted operating profit for Q3 2024 was 136 billion CNY, exceeding the expected 112 billion CNY, with an operating profit margin of 14.5% [1] - Adjusted net profit reached 128 billion CNY, above the expected 118 billion CNY, with a net profit margin of 13.7% [1] Summary by Sections Financial Performance - Q3 2024 revenue was 936 billion CNY, with a year-on-year growth of 22.4% [1] - Adjusted operating profit was 136 billion CNY, with an operating profit margin of 14.5% [1] - Adjusted net profit was 128 billion CNY, with a net profit margin of 13.7% [1] Core Local Business - Revenue from core local business was 694 billion CNY, a year-on-year increase of 20.2% [1] - Adjusted operating profit for this segment was 146 billion CNY, exceeding expectations [1] - The operating profit margin improved by 3.5 percentage points year-on-year to 21.0% [1] New Business Developments - New business revenue reached 242 billion CNY, a year-on-year increase of 28.9% [1] - Operating loss narrowed to 10 billion CNY, with a loss rate improvement to 4.2% [1] - The report highlights ongoing efforts in overseas markets and community group buying as potential growth areas [1] Future Outlook - The report projects revenue growth for 2024 to reach 1,670 billion CNY, with adjusted net profit expected to be 39,041 million CNY [6][12] - The target price reflects a valuation of 13,130 billion HKD for the company [12]