Jingwu Financial News | Tianfeng Securities released a research report indicating that Meituan (03690) had a revenue of 93.6 billion yuan in Q3 2024, exceeding Bloomberg's consensus expectation by 1.7%; EBIT was 13.7 billion yuan, surpassing Bloomberg's consensus expectation by 41.0%. Adjusted Net income was about 12.8 billion yuan, exceeding Bloomberg's consensus expectation of 10.1%. In terms of business segments, core local business revenue was 69.4 billion yuan, exceeding Bloomberg's consensus expectation by 1.5%; new business revenue was 24.2 billion yuan, surpassing Bloomberg's consensus expectation by 3.9%.

The institution stated that the on-demand delivery business continued to grow steadily in Q3 2024, with order volume increasing by 14.5% year-on-year. The company optimized product formats and deepened penetration into the Industry supply chain, helping merchants improve efficiency. For Pingo, the company continuously enhances operation efficiency and user experience. The company assists Pingo merchants in product selection, subsidy strategy, and traffic allocation. Through Pingo, merchants can effectively expand the sales of cost-effective products, attract new customers, and create more revenue. The Shencan project helps Dining brands promote high-quality popular products and stimulate non-instant consumption demands. The company further expands brand Satellite stores to provide comprehensive online support for merchants.

The institution believes that Meituan's core competitiveness lies in its strong merchant base and decades of accumulated authentic user reviews, maintaining a robust moat. At this stage, the barriers to the takeaway business are solid, and the external competitive landscape is gradually clarifying. In the future, Meituan's core local business profitability is expected to continue to strengthen, and the new business is on the path to reducing losses smoothly. Considering that the company's overseas expansion is in the early stages, and the tax rate will increase after profit release, the institution predicts Meituan's revenues for 2024-2026 to be 336.3/388/433.6 billion yuan (previously 334.7/384.3/433.3 billion yuan), with Net income (Non-IFRS) of 41.7/51.6/61.1 billion yuan (previously 40.8/60.6/72.4 billion yuan), maintaining a 'Buy' rating.