Glonghui, March 25 | Morgan Stanley released a report stating that Meituan's results beat expectations last quarter, and the stock price has broadly reflected favorable factors. Meituan promised to drastically reduce losses this year, responding to investors' biggest concerns, but we still need to pay attention to transaction growth and competitive prospects. The bank expects Meituan's first-quarter and full-year revenue to be 70 billion yuan and 323 billion yuan, respectively, up 20% and 17% year-on-year, respectively. The corresponding adjusted operating profit is 5.5 billion yuan and 33.5 billion yuan, respectively, up 24% and 81% year-on-year. The bank gave it a rating of “in line with the market”, and the target price was raised from HK$85 to HK$100. Damo said that while keeping Meituan's revenue forecast unchanged, the non-IFRS operating profit forecast for 2024 to 2026 will be raised by 10% to 21%, and the new measures will be taken into account to reduce losses. Meituan's current stock price corresponds to 15 times and 11 times the price-earnings ratio of today and next year. It is believed that Meituan's recent strong stock price already reflects narrowing loss expectations and steady core business performance.