MEITUAN(03690) 第一上海证券·2024-12-03 10:28Investment Rating - The report maintains a "Buy" rating for Meituan-W (3690) with a target price raised to HKD 220, reflecting strong performance and growth potential in core local commerce [2][26]. Core Insights - Meituan's Q3 2024 performance significantly exceeded market expectations, with revenue reaching RMB 936 billion, a year-on-year increase of 22.4%, and operating profit of RMB 137 billion, resulting in an operating profit margin of 14.6% [5][26]. - The core local commerce segment continues to show profitability improvements, with revenue of RMB 694 billion in Q3 2024, up 20.2% year-on-year, and an operating profit margin increase to 21.0% [9][26]. - New business initiatives are showing signs of reduced losses, with new business revenue of RMB 242 billion in Q3 2024, up 28.9% year-on-year, and operating losses narrowing to RMB 10 billion [15][26]. Summary by Sections Financial Performance - Q3 2024 revenue reached RMB 936 billion, surpassing the expected RMB 917 billion, with adjusted net profit of RMB 128 billion, exceeding Bloomberg's consensus of RMB 117 billion [5][26]. - The adjusted EBITDA and adjusted net profit for Q3 2024 grew by 134.8% and 124.0% year-on-year, reaching RMB 145 billion and RMB 128 billion respectively [5][26]. Core Local Commerce - The core local commerce revenue for Q3 2024 was RMB 694 billion, with a year-on-year growth of 20.2% and a quarter-on-quarter increase of 14.3% [9][26]. - Instant delivery transactions reached 7.078 billion orders, with daily average orders at 78.64 million, reflecting a 14.5% year-on-year increase [9][26]. New Business Initiatives - New business revenue for Q3 2024 was RMB 242 billion, with a year-on-year increase of 28.9% and a quarter-on-quarter increase of 12.2% [15][26]. - The company launched its food delivery platform Keeta in Riyadh, Saudi Arabia, as part of its ongoing international expansion efforts [15][26]. Market Position and Outlook - Meituan's competitive position in the local life services market remains strong, with expectations for continued growth in both food delivery and local services despite short-term macroeconomic challenges [26][12]. - The report anticipates that Meituan's business will continue to release operational profits, supported by improved governance and management focus on shareholder returns [26][12].