According to Huaxi Securities Research Report, Meituan-W (03690) Q2 achieved operating income of 68 billion yuan, an increase of 33% over the previous year; adjusted net profit of 7.7 billion yuan, an increase of 272% over the previous year. In terms of the flash sales business, the number of users and the frequency of repurchases continued to rise. The peak number of daily orders once again exceeded 10 million orders, and the number of merchants was +30% over the same period. In terms of retail and wine travel, the company's announcement showed that the transaction volume was +120% year-on-year, and the number of active merchants and active users reached a record high.
New business revenue increased +30% year on year to 15.7 billion yuan, operating loss increased to 5.2 billion yuan month on month, operating loss ratio 31%, narrowed 17 pct year on year. On the preferred side, revenue and transaction volume increased year on year, and operating efficiency improved markedly. The increase in month-on-month losses was mainly due to subsidies, cold chain logistics, and seasonal expenses. In terms of grocery shopping, market share and revenue have been growing steadily, the share of standard products and private brand transactions has increased, and the frequency of user repurchases has also increased.
The bank adjusted its profit forecast and expects to achieve revenue of 2797/3453/424.1 billion yuan in 2023-2025 (the previous forecast for 2023-2024 was 2754/342.1 billion yuan) and net profit of 111/278/41.1 billion yuan (the previous 2023-2024 forecast was 193/37.6 billion yuan), and maintain the “buy” rating.