MEITUAN(03690) 国泰君安·2024-08-31 10:08Investment Rating - The report maintains a "Buy" rating for Meituan-W (3690) with a target price of 158.8 HKD [18][30][40]. Core Insights - Meituan's Q2 revenue reached 82.25 billion RMB, representing a year-on-year growth of 21.0%. The adjusted net profit was 13.61 billion RMB, up 77.6% year-on-year. Core local commerce revenue was 60.68 billion RMB, with an operating profit of 15.23 billion RMB, significantly exceeding expectations [30][29][16]. - The report highlights the synergy between home delivery and in-store services, which is expected to enhance operational efficiency and drive growth in local life services [30][29]. - New initiatives are showing improved efficiency and reduced losses, with a Q2 operating profit margin of -6.1%, a year-on-year increase of 24.9 percentage points [30][29]. Summary by Sections Financial Performance - Q2 revenue increased by 21% to 82.25 billion RMB, with core local commerce and new initiatives revenues growing by 19% and 29% respectively [3][30]. - Instant delivery orders rose by 14% year-on-year to 6.2 billion orders, with operating profit margin improving to 13.7% [4][30]. - The adjusted net profit forecast for FY2024E-FY2026E is set at 41.3 billion, 51.5 billion, and 61.7 billion RMB respectively, reflecting a slight upward adjustment from previous estimates [16][30]. Business Segments - Core local commerce showed robust growth with delivery services, commissions, and online marketing services increasing by 13%, 20%, and 20% respectively [15][30]. - New business initiatives are expected to grow revenue by 25%, driven by improved pricing strategies and operational efficiencies [30][29]. Valuation - The report employs a Sum-of-the-Parts (SOTP) valuation method, indicating a total value of 1,000.3 billion RMB for Meituan, with various segments contributing differently to the overall valuation [9][30]. - The target price of 158.8 HKD reflects a strong upside potential based on the current market conditions and company performance [18][30].