Zhitong Finance APP learned that Orient Securities released a research report stating that it maintains a "buy" rating on Meituan-W (03690), taking into account macroeconomic uncertainty, increasing advertising monetization rates, cost optimization, and accelerated reduction of losses in new businesses. Adjust some business assumptions. The company is expected to have earnings per share of 4.8/6.64/7.38 yuan in 2024-2026 (originally forecasted earnings per share of 3.99/6.44 yuan for 2024-2025), with a target price of HKD 154.

The report said that the company's revenue and profit exceeded expectations. On the revenue side, the Q1 2024 revenue was 73.3 billion yuan (yoy+25.0%), which is higher than the institutional consensus forecast of 69 billion yuan, mainly due to core local business revenue exceeding expectations. On the profit side, the Q1 2024 adjusted operating profit was 6.9 billion yuan (institutional consensus expectation of 5.2 billion yuan), and the operating margin was 9.5% (7.5% in Q1 2023, 4.3% in Q4 2023), with improvements in both YoY and QoQ, mainly due to the increase in core local business profit and further narrowing of losses in new businesses. The adjusted net profit was 7.5 billion yuan (institutional consensus expectation of 5.8 billion yuan), and the net profit margin was 10.2% (9.4% in Q1 2023 and 5.9% in Q4 2023).

In terms of Meituan's core local business, revenue and operating profit improved QoQ, with high revenue growth. Q1 2024 revenue was 54.6 billion yuan (yoy+27.4%), higher than the institutional consensus forecast of 50.7 billion yuan; adjusted operating profit was 9.7 billion yuan, institutional consensus forecast was 8.4 billion yuan; and operating margin was 17.8%, which declined YoY but improved QoQ.