Bocom Intl raised its net income expectations for Meituan in 2024/25 by 18% and 2%.
According to a research report released by Bocom Intl, it maintains a “buy” rating for Meituan-W (03690), raising its revenue expectations for 2024/25 by 1% and 2%, and raising its net income expectations by 18% and 2%. The target price was raised by 16.2% to HKD 129.
According to the report, the company's first-quarter revenue and profits in 2024 exceeded expectations. Revenue increased by 25% over the year, with core businesses and new businesses increasing by 27% and 19%, respectively. In addition, the bank raised Meituan's core business forecast for 2024 by 0.6% to approximately CNY 1.4 billion, mainly due to improved monetization rates for delivery and flash purchase businesses. New business grew by about 2.3% to CNY 1.9 billion, mainly driven by small elephant supermarkets, fast donkeys, and high-priced SKU increases.
