According to a research report from Jefferies, Meituan's Q1 revenue and adjusted profit increased by 25% and 36% YoY to RMB 73.3 billion and RMB 7.5 billion, respectively, exceeding market expectations by 6% and 29%, respectively. The bank expects that the unit economic benefits of the company's food delivery business will improve due to subsidies and lower rider costs, while main competitors Douyin will strategically focus on monetization, and the profit margins of in-store, hotel, and travel businesses will also stabilize. The bank predicts that the company's revenue growth in Q2 and 2024 will be 18%, and its adjusted profit growth will be 47% and 71%, respectively. With a steady management execution capability, local service penetration rate on the internet, and a more stable competitive environment, the bank is bullish that the company can perform strongly even when affected by external factors. Jefferies has raised the company's earnings forecast for 2024-2026 by 29%, 18%, and 9%, and increased the target price from HKD 131.6 to HKD 137.8, maintaining its "outperform" rating.