Jinwu Financial News | According to the Guolian Securities Research Report, Meituan-W (03690) announced results for the fourth quarter and full year of fiscal year 2023. In 2023, the company achieved operating income of 276.7 billion yuan, an increase of 25.8% over the previous year; achieved adjusted net profit of 23.3 billion yuan.
In 2023, the company's core local business division's revenue was 206.9 billion yuan, up 28.7% year on year; operating profit was 38.7 billion yuan, up 31.2% year on year, and operating profit margin increased to 18.7% from 18.4% in 2022. In 2023, the company's new business segment revenue was 69.8 billion yuan, an increase of 18% over the previous year; operating losses narrowed to 20.2 billion yuan, a significant reduction from the 2022 loss scale of 28.4 billion yuan, and the operating loss rate improved to 28.9% from 47.9% in 2022. In 2024, it will continue to improve operating efficiency to reduce losses. For Meituan's preferred business, the company will make strategic adjustments, improve the business model, increase product price increases and reduce subsidies, and pay more attention to long-term growth in the natural retention rate of users to achieve the goal of drastically reducing operating losses.
According to the bank, considering the steady growth of the company's core local commercial business and significant loss reduction in new business segments, the bank raised its estimates of the company's revenue and adjusted net profit for 2024-2026 to be 3328/3907/444 billion yuan respectively, with corresponding growth rates of 20.3%/17.4%/13.7%, and adjusted net profit of 340/492/60.1 billion yuan respectively, with corresponding growth rates of 46.1%/44.9%/22.2%, respectively. Considering that Meituan is still growing rapidly, referring to comparable company valuation multiples, the bank gave the company 18 times PE in 2024 (based on adjusted net profit), then the company's reasonable market value was 611.4 billion yuan/HK$674 billion, and the target price was 97.91 yuan/107.94 HK$107.94 (exchange rate 0.90706), maintaining the “gain” rating.