2024-04-02 16:00Investment Rating - The investment rating for the company is "Buy" and it is maintained [2][26]. Core Insights - The company's Q4 performance exceeded expectations with revenue of 73.7 billion RMB, a year-over-year increase of 22.6%, surpassing Bloomberg's consensus estimate of 72.7 billion RMB. The core local business revenue was 55.1 billion RMB, up 26.8% year-over-year, while new business revenue reached 18.6 billion RMB, growing 11.5% year-over-year [2]. - The gross margin improved to 33.9%, an increase of 5.8 percentage points year-over-year, due to a decrease in delivery-related costs for takeout and flash purchase orders. However, the sales expense ratio rose to 22.7%, up 4.8 percentage points year-over-year, driven by increased user incentives and advertising spending [2]. - Adjusted net profit for Q4 was 4.4 billion RMB, a significant increase of 427.6% year-over-year, resulting in an adjusted net profit margin of 5.9%, up 4.6 percentage points year-over-year. For the full year 2023, the company reported revenue of 276.7 billion RMB, a 25.8% increase year-over-year, and an adjusted net profit of 23.3 billion RMB, up 722.5% year-over-year [2]. Summary by Sections Market Data - Closing price (HKD): 96.80 - Total shares (billion): 6.235 - Net assets (billion RMB): 151.956 - Total assets (billion RMB): 293.030 - Net asset per share (RMB): 24.34 [1]. Business Performance - The company's instant delivery transactions reached 6.05 billion orders in Q4, a year-over-year increase of 25.2%. The average daily takeout orders were 57.42 million, up 24.8% year-over-year, with a solid growth in annual transaction users and high-frequency users [2]. - The in-store and travel business saw over 100% growth in transaction value for the year, with significant increases in annual transaction users and active merchants [2]. - The new business segment reported revenue of 18.6 billion RMB in Q4, with operating losses narrowing by 24.1% to 4.8 billion RMB. The company plans to adjust its strategy in 2024 to focus on user retention and reduce subsidies, aiming for a significant reduction in operating losses [2]. Financial Projections - For 2024, the company expects revenue to reach 320.5 billion RMB, with a year-over-year growth rate of 15.8%. Adjusted net profit is projected to be 32.2 billion RMB, reflecting a growth of 38.5% year-over-year [11][14].