MEITUAN(03690) 浦银国际证券·2024-12-03 02:50Investment Rating - The report maintains a "Buy" rating for Meituan, with a target price raised to HKD 200, indicating a potential upside of 19% from the current price of HKD 168.7 [3][6][23]. Core Insights - Meituan's Q3 2024 revenue reached RMB 936 billion, a year-on-year increase of 22.4%, surpassing market expectations by 1.7%. Adjusted net profit was RMB 128 billion, up 124% year-on-year, exceeding market expectations by 10.1% [1][2]. - The company's local business revenue grew by 20.2% year-on-year to RMB 694 billion, with delivery, commission, and advertising revenues increasing by 21%, 24%, and 18% respectively [2][3]. - New business revenue increased by 28.9% year-on-year to RMB 242 billion, with operating losses narrowing by 79.9% to RMB 10 billion, indicating a path towards profitability [3][5]. Summary by Sections Financial Performance - Q3 2024 adjusted net profit margin was 13.7%, compared to 16.5% in Q2 2024 and 7.5% in Q3 2023. Gross margin improved by 4.0 percentage points to 39.3% due to enhanced retail efficiency [1][2]. - Year-to-date, the company has repurchased approximately 4.2% of its total shares [1]. Business Segments - The core local business showed robust growth, with operating profit rising 45% year-on-year to RMB 146 billion and operating profit margin improving by 3.5 percentage points to 21.0% [2][3]. - The flash purchase business experienced double-digit growth in both user numbers and transaction frequency, while the hotel and travel segment saw order volume increase by over 50% [2][3]. Future Outlook - The report anticipates that new businesses, excluding Meituan Preferred, will achieve profitability next year, driven by strong growth in supermarket and selection businesses [3]. - The adjusted net profit forecast for FY25E has been raised to RMB 560 billion, reflecting confidence in the recovery of consumer spending and ongoing efficiency improvements from cross-selling initiatives [3][5].