MEITUAN(03690) 东方证券·2024-04-09 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 162.72 HKD, indicating a potential upside from the current price of 99.4 HKD [2][41]. Core Insights - The company's overall performance in Q4 2023 exceeded expectations, with revenue of 73.7 billion CNY, a year-on-year increase of 22.6%. Adjusted operating profit reached 3.2 billion CNY, with an operating margin of 4.3%, significantly improved from 1.4% in Q4 2022. The adjusted net profit was 4.4 billion CNY, with a net profit margin of 5.9% [29][41]. - The core local business showed strong user engagement, with Q4 revenue of 55.1 billion CNY, a year-on-year increase of 26.8%. The adjusted operating profit was 8 billion CNY, with a profit margin of 14.5% [29][41]. - The new business segment aims to significantly reduce losses in 2024, with Q4 new business revenue of 18.6 billion CNY, a year-on-year increase of 11.5%, and an operating loss of 4.8 billion CNY [29][41]. Financial Summary - The company’s projected financials for 2023E to 2025E show a steady increase in revenue, with 2023E revenue at 276.7 billion CNY, expected to grow to 379.1 billion CNY by 2025E. The operating profit is projected to turn positive in 2023E at 13.4 billion CNY, reaching 47.4 billion CNY by 2025E [5][41]. - The gross margin is expected to improve from 35.1% in 2023E to 41.3% in 2025E, while the net margin is projected to increase from 5.0% to 10.6% over the same period [5][41]. Segment Valuation - The report provides a breakdown of segment valuations for 2024E, estimating the takeaway business at 1,652 billion CNY in revenue, with a market cap of 6,680 million HKD and a target price of 107.1 HKD per share. The in-store and hotel business is projected to generate a tax-adjusted operating profit of 155 billion CNY, with a market cap of 2,776 million HKD and a target price of 44.5 HKD per share [37][41].