Jingu Finance News | Orient Securities issued a research report, stating that Meituan (03690) 24Q2 revenue was 82.3 billion yuan (yoy + 21%), in line with the expected 80.4 billion yuan. In terms of profit, the adjusted operating profit in 24Q2 was 13.9 billion yuan (in line with the expected 10.2 billion yuan), with an operating margin of 16.9% (8.7% in 23Q2, 9.5% in 24Q1), both significantly improved compared to the previous periods. This improvement was mainly due to the release of core local business profit and a significant narrowing of losses in new businesses. Adjusted net income in 24Q2 was 13.6 billion yuan (in line with the expected 10.3 billion yuan), with a net income margin of 16.5% (11.3% in 23Q2, 10.2% in 24Q1).
The bank further pointed out that the growth in new business revenue exceeded expectations, leading to further narrowing of operating losses. New business revenue in 24Q2 was 21.6 billion yuan (yoy + 28.7%, expected 20.5 billion), and operating losses narrowed to 1.3 billion yuan (expected loss of 2.1 billion yuan), with an improved loss rate of 6.1%, qoq + 8.7pp. 1) Meituan Optimal Selection: Operational efficiency improved, average item price and markups slightly increased, enhanced fulfillment capability, all contributing to significant qoq and yoy reductions in operating losses. 2) Other businesses: B2B dining supply chain services, dining management systems, bike sharing, and power banks achieved healthy growth and efficiency improvements, and Xiaoxiang Supermarket made significant progress in products, operations, and fulfillment.
Taking into account the resilience of Meituan's business in the macroeconomic environment, the release of core commercial profits and significant reduction in losses in new businesses, the bank raised the company's EPS for 24-26 to 6.15/7.43/8.21 yuan (previously forecasted 4.80/6.64/7.38 yuan), adopting segmented valuation. The takeaway business was given a 3.4xPS, with an expected revenue of 165.7 billion CNY in 24, while the in-store and travel segments were valued at 14.4xPE, expecting a post-tax profit of 18.9 billion CNY in 24. New businesses were only considered for community group buying valuation, maintaining a 0.6xP/GMV, expecting a GMV of 92.9 billion in 24, the company's fair value is 985.3 billion HKD, with a target price of 158.37 HKD, maintaining a "buy" rating.