Jingu Financial News | Sealand Securities released a research report, forecasting that Meituan (03690) will achieve a total revenue of 92.1 billion yuan in Q3 2024 (+20.5% YoY, +12% QoQ); core local business revenue of 68.7 billion yuan (+19% YoY, +13% QoQ), with the dining delivery business expected to generate revenue of 45.9 billion yuan (+15% YoY, +13% QoQ), operating profit margin of 17.8% (+2.9pct YoY); flash sale business expected revenue of 6.7 billion yuan (+42% YoY), operating profit margin of 0.3% (+2.4pct YoY); in-store hospitality business expected revenue of 15.4 billion yuan (+25% YoY, +11% QoQ), operating profit margin of 35% (+1pct QoQ); new business expected revenue of 23.5 billion yuan (+25% YoY, +9% QoQ), operating profit margin of -8% (+20pct YoY).

The brokerage firm expressed bullish sentiment on the company's core barriers in instant delivery, considering the rational competition in the local life industry and the accelerated reduction in losses of new businesses. The firm adjusted the company's revenue forecast for 2024-2026 to 332.8/386.3/438.9 billion yuan, net income forecast for 2024-2026 to 33.2/44.1/55.1 billion yuan, Non-GAAP net income forecast to 41.5/57.3/68.3 billion yuan, corresponding diluted EPS of 5.22/6.86/8.48 yuan. Based on the SOTP valuation method, the firm gives a 2025 total target market capitalization of Meituan of 1397.8 billion yuan, with a corresponding target price of 230 yuan/250 Hong Kong dollars, maintaining a "buy" rating.