MEITUAN(03690) 东方证券·2024-06-29 13:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 154.00 HKD [5][6][22]. Core Insights - The company's Q1 2024 revenue reached 733 billion CNY, a year-over-year increase of 25.0%, surpassing Bloomberg's consensus estimate of 690 billion CNY, primarily driven by better-than-expected core local business revenue [1][6]. - Adjusted operating profit for Q1 2024 was 69 billion CNY, exceeding the expected 52 billion CNY, with an operating profit margin of 9.5%, improving from 7.5% in Q1 2023 and 4.3% in Q4 2023 [1][6]. - The core local business revenue grew by 27.4% year-over-year to 546 billion CNY, with adjusted operating profit of 97 billion CNY, also above the expected 84 billion CNY [1][6]. Summary by Sections Overall Performance - Q1 2024 revenue was 733 billion CNY, with a 25.0% year-over-year growth, and adjusted net profit was 75 billion CNY, a net profit margin of 10.2% [1][6][21]. Core Local Business - Revenue from the core local business was 546 billion CNY, with a year-over-year increase of 27.4% [1][6]. - The total orders for the delivery and flash purchase business reached 5.465 billion, a year-over-year increase of 28.1% [1][6]. Delivery Business - The delivery business saw a significant increase in order volume, with a year-over-year growth of 24% [1][6]. - The average order value (AOV) saw a structural decline, but improved advertising monetization and optimized subsidies mitigated the negative impact on revenue [1][6]. Flash Purchase Business - Flash purchase orders grew nearly 60% year-over-year, with a significant increase in user purchase frequency and transaction numbers [1][6]. - The business is expected to continue high-speed growth in Q2 2024, driven by expanding supply categories and consumer demand for convenience [1][6]. New Business - New business revenue reached 187 billion CNY, with a year-over-year growth of 18.5%, and operating losses narrowed to 28 billion CNY [1][6]. - The community group buying segment is focusing on operational improvements and high-quality growth, leading to a significant reduction in losses [1][6].