Jinwu Financial News | According to the China Merchants Securities Research Report, Meituan (03690) released the 23Q4 financial report. The 23Q4 company had revenue of 73.70 billion/ +22.6%, operating OP1.76 billion; adjusted net profit of 4.37 billion/+427.6%. Among them, the core local commercial division's revenue was 55.13 billion/+26.8%, operating OP was 8.02 billion/+11.1%; new business revenue was 18.57 billion/+11.5%, and OP was -48.3 billion yuan. The company's core revenue distribution and OP growth rate were slightly better than expected in the current quarter, and the 24-year preferred loss reduction brought performance flexibility; in the long run, the company's in-store and takeout business growth and barriers still exist.
The company's Q4 performance was better than expected, and 24 years of preferential loss reduction brought performance flexibility; in the long run, the company's takeout and in-store business growth and barriers still exist. The company's takeout+in-store business OP is estimated to be 42.8 billion in 2024. According to the 15% tax rate, the estimated net profit for store+takeout is 36.4 billion, giving 20 times PE, corresponding to the target price of HK$127, maintaining the “Highly Recommended” rating.