Summary of Meituan (3690) Conference Call Company Overview - Company: Meituan (3690) - Industry: On-demand services, including food delivery and local services Key Points Demand Outlook - Order Volume: - 2Q order volume expected to grow by 14-15% YoY, slightly lower than March figures [1] - Flash purchase growth rate is approximately 2x better than food delivery [1] - Revenue: - On-demand revenue growth is projected to be in the mid-teens, 1 ppt higher than order volume growth [1] - Average Order Value (AOV) for food delivery decreased by over 5% YoY in 1Q, but average revenue per order only declined by RMB 0.05 due to increased ad monetization and optimized subsidies [1] - AOV decline in 2Q is expected to be less than 5% YoY, with continued improvements in ad monetization and subsidies [1] - Average revenue per order is expected to increase YoY in 2Q [1] - User Experience (UE): - Temporary subsidy base is normalizing in 2Q [1] - With ample rider supply, average delivery costs are expected to decrease by a few cents [1] - UE is projected to increase by RMB 0.1 YoY in 2Q [1] Financial Outlook - Full Year (FY) Outlook: - On-demand operating profit is expected to grow by 18%-20% YoY [1] - Food delivery order volume is projected to grow in the low to mid-teens YoY [1] - UE improvements are anticipated, with adjustments in capacity structure expected to lower average delivery costs YoY [1] - The company will not increase subsidies due to macroeconomic factors, as it believes ROI is low and its market share is already high [1] - In-store Services: - Significant iterations in the in-store segment are planned for 2H, with new light meal options being introduced [1] - Some food delivery orders may switch to in-store pickups [1] - Flash Purchase: - Continued investment in marketing for growth is expected, despite maintaining losses [1] Competitive Landscape - Competition with Douyin: - The company is focusing on monetization and efficiency improvements under new leadership [2] - Meituan is expected to adopt a more measured approach to competition, focusing on market share rather than blindly following subsidy policies [2] Financial Performance - 1Q Losses: - The company reported a loss of RMB 2.9 billion in 1Q [3] - Other business segments showed slight profitability [3] - 2Q and FY Outlook: - 2Q revenue is expected to grow by 23-25% YoY, accelerating from 1Q due to the cessation of ride-hailing services [3] - Losses are projected to be around RMB 9 billion for FY24, with a focus on reducing losses in 2H [3] International Expansion - Overseas Plans: - Currently in the planning stage for international expansion, with a focus on Hong Kong and potential markets in Europe and Southeast Asia [3] - The company is taking a controlled approach to expansion, assessing market conditions before entering new regions [3] Capital Allocation - Cash Management: - The company has USD 4 billion in cash and is actively managing capital outflows [4] - No current plans for convertible bonds, and there is no immediate refinancing pressure [4] - Share Buyback: - The company is considering extending its share buyback program based on share price and capital outflow quotas [4] Conclusion - Meituan is navigating a competitive landscape while focusing on growth in its on-demand services and optimizing its financial performance. The company is strategically planning for international expansion and managing its capital effectively to support long-term growth.
3690纪要