MEITUAN(03690) 国泰君安·2024-07-17 07:31Investment Rating - The report maintains a "Buy" rating for Meituan (3690.HK) with a target price of 140.4 HKD [4][7][17]. Core Insights - Meituan is expected to benefit from the recovery in offline consumption demand, with synergies from the integration of its delivery and in-store services [4][7]. - The company is confident in its business outlook, as evidenced by its substantial share buyback plans totaling 30 billion USD [4][7]. - The report anticipates that new business initiatives will continue to reduce losses and could become new growth drivers for Meituan in the future [4][7]. Summary by Sections Earnings Forecast and Investment Recommendations - The projected revenues for FY2024E, FY2025E, and FY2026E are 327.7 billion, 384.1 billion, and 437.1 billion RMB respectively [4][7]. - Adjusted net profits for FY2024E, FY2025E, and FY2026E are expected to be 32.1 billion, 44.2 billion, and 56.8 billion RMB respectively [4][7]. - The report highlights the expected improvement in operating profit margins for the in-store business, projecting a rise from 31% in FY24Q2 to 34% by FY2024Q4 [4][7]. Business Integration and Growth Potential - The integration of delivery and in-store services is expected to enhance operational efficiency and drive growth [4][7]. - As of July 4, the number of merchants participating in Meituan's "Shen Membership" program reached 5 million, indicating strong engagement [4][7]. - The report notes that competition in the delivery sector is easing, which may lead to improved profit margins for Meituan [4][7]. Financial Performance and Share Buyback - Meituan's significant share buyback plan reflects its confidence in the local business development and financial stability [4][7]. - The report indicates that the company has sufficient financial resources to support the buyback while maintaining a robust financial position [4][7].