Tianfeng Securities·2024-06-23 04:01Investment Rating - The report maintains a "Buy" rating for Meituan-W (03690) with a target price of 119.9 HKD, indicating an expected relative return of over 20% within the next six months [5]. Core Insights - Meituan's Q1 2024 performance exceeded market expectations, with revenue of 732.8 billion CNY, surpassing Bloomberg's consensus by 6.0%. Adjusted net profit reached approximately 74.9 billion CNY, exceeding expectations by 25.4% [5]. - The core local business revenue was 546.3 billion CNY, also above expectations by 7.7%. New business revenue was 186.5 billion CNY, exceeding consensus by 2.3% [5]. - The report highlights significant growth in transaction users and frequency in the food delivery segment, driven by operational optimizations and marketing strategies [5]. - The new business segment's operating loss narrowed to 27.6 billion CNY, better than Bloomberg's consensus by 14.7% [5]. - Future revenue projections for Meituan are set at 3292 billion CNY, 3809 billion CNY, and 4293 billion CNY for 2024, 2025, and 2026 respectively, with net profits forecasted at 364 billion CNY, 530 billion CNY, and 650 billion CNY [5]. Summary by Sections Overall Performance - Q1 2024 revenue and profit performance exceeded market expectations, with significant contributions from both core local business and new business segments [5]. Core Local Business - Revenue from the core local business reached 546.3 billion CNY, with substantial growth in delivery services and commission income [5]. New Business - The new business segment showed improvement with a reduced operating loss and increased revenue, indicating a positive trend in operational efficiency [5]. Investment Recommendation - The report emphasizes Meituan's strong merchant base and user evaluations as key competitive advantages, suggesting that the company's profitability in core local business is expected to strengthen [5].