MEITUAN(03690) 国信证券·2024-07-30 08:01Investment Rating - The report assigns an "Outperform" rating to Meituan [22] Core Views - Meituan's core business outlook focuses on promoting conversion through cost-effectiveness and stabilizing/improving monetization rates as the key to profit growth [3] - The integration of Meituan's in-store and home delivery businesses is expected to drive more cost-effective product innovations and enhance bargaining power with merchants [5] - Meituan's organizational restructuring and business integration are expected to gradually show results, with a neutral assumption of a 0.3-0.4pct YoY increase in monetization rate and operating profit margin in 2024 [9] Business Trends - Meituan's food delivery business is expected to see a 13.9% YoY increase in order volume and a 11.3% YoY increase in GTV in 2024 [10] - The in-store and hotel business is expected to achieve a 32.6% YoY increase in GTV in 2024, with a monetization rate of 6.0% [10] - Meituan's new businesses, including Meituan Youxuan, are expected to reduce losses significantly, with a target of reducing operating losses by 8-10 billion yuan in 2024 [71] Competitive Landscape - In 2023, Douyin accelerated its local life services, achieving a 256% YoY growth in GTV, with over 4.5 million partnered stores [30] - Meituan responded to Douyin's competition by lowering commission rates for some in-store merchants and launching live streaming and special offers, stabilizing its in-store business sales at around 200 billion yuan in Q1 2024 [30] - In 2024, Douyin adjusted its organizational structure to focus more on commercialized monetization, while Meituan integrated its in-store and home delivery businesses to improve internal efficiency [35][12] Strategic Adjustments - Meituan's organizational restructuring in 2024 aims to integrate in-store and home delivery businesses, enhancing internal collaboration and operational efficiency [87] - The company is focusing on younger leadership and flattening its organizational structure to reduce resistance to business integration and improve synergy [90] - Meituan's membership system integration is seen as a key driver for future growth, aiming to enhance user retention and cross-category consumption [99] Financial Performance - Meituan's core local commerce revenue grew by 27% YoY in Q1 2024, with instant delivery orders increasing by 28% to 5.46 billion [70] - The company's advertising revenue growth accelerated in Q1 2024, surpassing commission income, indicating a relative easing of competition in the in-store business [70] - Meituan's new business segment reduced losses significantly in Q1 2024, with an operating loss of 2.8 billion yuan, down from previous quarters [71]