＜Research＞HTSC Expects MEITUAN-W (03690.HK) 2Q Non-IFRS NP to Rise 16.4% QoQ to RMB8.92B

　　Huatai Securities wrote in a report that China's macro environment remained volatile in 2Q, with growth in retail food and beverage consumption within the total retail sales of social consumer goods slowing down. Amid this, MEITUAN-W (03690.HK) +2.200 (+2.045%) Short selling $176.69M; Ratio 19.434% linked its to-home and in-store business through its “God Member” scheme, while accelerating loss reduction in its new business. The broker believed the company's profitability is still resilient under pressure due to years of operation refinement.

　　HTSC maintained its Buy rating on MEITUAN, with a target price of $150.7.

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　　The broker expected MEITUAN's revenue to reach RMB79.92 billion in 2Q24, up 17.6% YoY. Non-IFRS net profit would be RMB8.92 billion, rising 16.4% QoQ. Revenue forecasts for 2024/25/26 would be RMB325.2 billion, RMB383.7 billion and RMB450.1 billion respectively, representing YoY growth of 17.5%, 18% and 17.3%. Non-IFRS net profits during the 3 years are projected to be RMB37.9 billion, RMB53.4 billion and RMB70.0 billion, representing YoY growth of 63.1%, 40.8% and 31.1%.

　　HTSC expected MEITUAN's 2Q24 food and beverage takeaway unit volume to grow 13% YoY, while revenue from this segment would elevate 11% YoY, mainly due to a slight decline in average unit price amidst the trend of pursuing price-performance ratio in consumption. On the profit side, the company is actively improving subsidy efficiency and advertising monetisation rate to hedge against the impact of average order volume decline, and is expected to earn RMB1.6 per unit of takeaway in 2Q.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-29 12:25.)

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