Jinwu Financial News | According to BOC International Development Research Report, the Meituan (03690) organizational structure was adjusted, core business resources were concentrated, and the founders controlled innovation. Facing competition, the bank believes that users of the Meituan platform have strong mentality and high stickiness. It is still one of the key platforms for merchants to invest in. The instant retail market is large, but the entry threshold is high, and it is very difficult to get started in the short term.
Compared with the bank's judgment on Meituan's business in early 2023, Meituan's performance in 2023 is in line with expectations, and will maintain a steady growth trend in 2024. Meituan's revenue increased 17% in 2024. Despite intense competition in the industry, the scale space of the in-store industry and the profitability of the takeaway business are still being verified, and the management is stable.
According to the bank, compared to competition in the e-commerce industry, Ali's market share in core categories has declined significantly. Meituan's key categories still have barriers. The continuation of low price competition remains to be seen. The competitive environment is better than e-commerce, and the room for improving user stickiness is better than e-commerce leading platforms. It is expected that competitive pressure may ease in the second half of 2024. There is a possibility that profit margins will recover in 2025. The price-earnings ratio of the core business will be 15 times. Conservative principles will not take into account the valuation contribution of the new business, and the target price will be lowered to HK$93 to maintain the purchase rating.