Understanding the Market | Meituan-W defies the trend with over 3% increase, first-quarter performance exceeds expectations, core local business sees high-quality growth

Meituan-W defied the trend with a rise of over 3%, as of the time of publication, it increased by 3.62% to HKD 114.4, with a turnover of HKD 5.29 billion. On the news front, Meituan achieved revenue of RMB 73.276 billion in the first quarter, a year-on-year increase of 25%; net profit for the period was RMB 5.369 billion, a year-on-year increase of 59.9%; adjusted EBITDA under non-International Financial Reporting Standards was RMB 8.07 billion, a year-on-year increase of 28.9%; net profit attributable to equity holders was RMB 5.369 billion, a year-on-year increase of 59.86%. In the first quarter, Meituan's core local business achieved steady development, with revenue of RMB 54.6 billion, a year-on-year growth of 27%. BOC International pointed out that considering Meituan's better-than-expected performance in the first quarter of this year and the high unit economic efficiency (UE) of the takeaway business, it raised the profit forecast for 2024-2026 by 29%/18%/9% respectively. The target price for Meituan was raised by 5% from HKD 131.6 to HKD 137.8. BOC International expects Meituan's core local business revenue to increase by 16% annually. At the same time, it is expected that Meituan's adjusted profit in the second quarter of 2024 will increase by 11%