Haitong Securities·2024-06-21 06:01Investment Rating - The report maintains an "Outperform" rating for Meituan, indicating a positive outlook compared to the market [8][25]. Core Insights - The report highlights that Meituan's revenue for Q1 2024 reached 73.3 billion yuan, representing a year-on-year increase of 25.0%. The number of instant delivery transactions was 5.46 billion, up 28.1% year-on-year. Adjusted EBITDA for the same period was 8.1 billion yuan, with cash and cash equivalents amounting to 33.3 billion yuan as of March 31, 2024 [2][3][10]. - The report emphasizes the strong growth in the core local business segment, which generated 54.6 billion yuan in revenue, a 27.4% increase year-on-year, with an operating profit of 9.7 billion yuan [8]. - New business revenue for Q1 2024 was 18.7 billion yuan, showing an 18.5% year-on-year growth, while operating losses narrowed by 45.2% [8]. Financial Performance Summary - Revenue projections for Meituan are as follows: 2024E at 323.3 billion yuan, 2025E at 365.9 billion yuan, and 2026E at 414.2 billion yuan, with year-on-year growth rates of 16.81%, 13.20%, and 13.18% respectively [4][25]. - Net profit is expected to significantly increase from 31.2 billion yuan in 2024E to 47.3 billion yuan in 2026E, reflecting a year-on-year growth of 125.39% and 23.33% for the respective years [4][25]. - The report projects a gross margin improvement from 35.12% in 2023 to 42.09% in 2026, indicating enhanced profitability [4][25]. Cash Flow and Financial Health - As of March 31, 2024, Meituan's cash and cash equivalents stood at 33.3 billion yuan, with a net operating cash flow of 6 billion yuan for Q1 2024 [10]. - The report indicates a strong balance sheet with a projected asset-liability ratio decreasing from 48.14% in 2023 to 33.25% in 2026, suggesting improved financial stability [13]. Market Position and Competitive Advantage - The report notes that Meituan's advertising merchant growth is robust, supported by enhanced marketing solutions that help merchants acquire customers more efficiently [20]. - The membership system is set for a comprehensive upgrade, expanding beyond food delivery to include in-store services, which is expected to further improve operational efficiency [20].