Great Wall Securities·2024-04-10 16:00Investment Rating - The report maintains a "Buy" rating for Meituan-W (03690.HK) with an expected price increase of over 15% relative to the industry index in the next six months [2][5]. Core Views - Meituan's 2023 annual report shows a significant revenue increase of 25.8% year-on-year, reaching RMB 276.74 billion, with an adjusted net profit of RMB 23.25 billion [2][3]. - The core local commerce segment demonstrated resilience, with a revenue growth of 28.7% to RMB 206.9 billion in 2023, indicating a solid foundation for profitability [3]. - New business segments are showing signs of recovery, with revenue growth of 18.0% to RMB 69.8 billion, and a narrowing of operating losses to RMB 20.2 billion, suggesting potential for future profitability [4]. Financial Summary - Revenue for 2024 is projected at RMB 336.38 billion, with net profit expected to reach RMB 26.11 billion, translating to an EPS of RMB 4.19 [5]. - The report forecasts continued revenue growth through 2026, with expected revenues of RMB 393.86 billion and RMB 453.49 billion in 2025 and 2026, respectively [5]. - The company's return on equity (ROE) is expected to improve significantly, reaching 18.73% in 2025 and 18.10% in 2026 [2][5].