Zhongtong Finance and Economics APP learned that HTSC released a research report stating that it maintains a “buy” rating on Meituan-W (03690), believing that the company still has profitability resilience due to its refined operations over the years, and the target price is HKD 150.7.

The bank predicts that Meituan's Q2 revenue will reach RMB 79.92 billion, a year-on-year increase of 17.6%, and non-IFRS net income will be RMB 8.92 billion, a quarterly increase of 16.4%. The revenue forecast for 2024 to 2026 is RMB 325.2 billion, 383.7 billion, and 450.1 billion, respectively, with year-on-year growth of 17.5%, 18%, and 17.3%. The non-IFRS net income forecast is RMB 37.9 billion, 53.4 billion, and 70 billion, respectively, with year-on-year growth of 63.1%, 40.8%, and 31.1%.

In addition, HTSC also predicts that Meituan's second-quarter dining takeaway volume will increase by 13% year-on-year, and dining takeaway revenue will increase by 11% year-on-year, mainly from the trend of cost-effective consumption leading to a slight decrease in average customer price. On the profit side, the company actively improves subsidy efficiency and advertising realization rate to offset the impact of AOV decline. It is expected that the unit profit of takeaway in the second quarter will be RMB 1.6.