美团（03690.HK）2024年第三季度业绩电话会
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会议摘要
Meituan announced its performance in the third quarter of 2024, with total revenue increasing by 22.4% year-on-year, and operating profit and profit margin improving. The new business is growing healthily. The company emphasizes continued investment in technology and innovation to support merchants and delivery drivers, announces international expansion plans, and commits to industry digital transformation. At the same time, the company benefits from government stimulus policies, with increased consumption during the National Day holiday expected to continue driving local business growth, deepening membership programs, and exploring cross-selling. Overseas expansion will start with the Saudi Arabian market, emphasizing a research-based long-term strategy. The company plans to give back to shareholders through stock buybacks, demonstrating confidence in business development.
会议速览
Meituan's 2024 Q3 Earnings Call Highlights Growth and Future StrategiesIn the third quarter of 2024, Meituan experienced a 22.4% year-over-year increase in total revenue and a significant rise in profits by 124%. The company's success is attributed to increased user activity and efficient marketplace operations. Meituan emphasizes the potential of digital transformation in China's local commerce industry and pledges to continue leveraging technology to drive industry growth and improve consumer lifestyles. The CEO highlighted the growth of their on-demand delivery business and the innovative business model catering to young consumers, showcasing over 100 million annual active users predominantly under 35.
Strategic expansion and improved user experience in digital commerce.The conversation outlines a comprehensive strategy for a digital commerce platform that focuses on enhancing user experience, expanding market size, and fostering collaborations with brands. It emphasizes the success of engaging with over five thousand brands and assisting ten thousand festival brands in creating better-selling items, highlighting the platform's role in stimulating consumer demand. The platform has also partnered with two hundred planets to offer a wide range of online courses and has improved its emergency school program. In addition, the introduction of new initiatives, strategic partnerships, and a focus on operational efficiency in grocery, retail, hardware, and software services are highlighted as key drivers of healthy growth and financial improvement. The financial results for the third quarter are presented, showing a significant increase in revenue, an improved cost of revenue ratio, and enhanced marketing efficiency, demonstrating the platform's dedication to quality growth and efficiency.
- Estrategias e Iniciativas para el Crecimiento Sostenido en la Industria de Entrega de AlimentosThe conversation focuses on a range of efforts to help the food service industry grow sustainably, such as improving support for merchants, promoting innovation within the industry, and increasing market demand. These initiatives involve enhancing merchant support programs, simplifying marketing resources, and offering financial assistance for improving business operations. The company's goal is to assist merchants in seizing market opportunities, becoming industry frontrunners, and overcoming obstacles, with an emphasis on long-term growth in the food delivery field. Moreover, the dialogue underscores the company's dedication to serving as a reliable partner for restaurant merchants, aiding in their expansion and addressing concerns about excessive competition in the industry.
Estrategias y Perspectivas en Comercio Local y Comercio Rápido
Strategies and Prospects in Local Commerce and Quick CommerceThe conversation talks about how recent stimulus policies have affected local businesses, with a focus on higher consumer confidence and spending. The speakers are optimistic about the future growth of local businesses, emphasizing the need to adapt to changing consumer trends, have a strong presence in the industry supply chain, and explore new ways of supplying goods. They also discuss the potential of fast commerce in online retail, expecting it to greatly impact the retail sector, and share strategies for improving the variety and quality of products. The conversation ends with a focus on achieving profitable growth, investing in the business ecosystem, and expanding on-demand retail to new markets and categories.
Investor Presentation on Expansion and Strategic InitiativesThe conversation is centered around a company's strategic expansion, specifically in the hotel and travel industry, with a focus on lower tier cities and international markets such as Saudi Arabia. It highlights advancements in improving product offerings, partnerships with merchants, and engaging consumers through the 3 Huiyuan program and integrated marketing strategies. The discussion includes the competitive environment and future prospects for operating margins, emphasizing the company's long-term vision for sustainable growth, effective capital allocation, and the potential for global expansion while respecting local cultures and environments. The company also discusses its capital strategy, including share buybacks and the utilization of funds from a recent issuance of senior notes for strategic investments and returns to shareholders.
要点回答
Q：What are the financial performance results for the third quarter?
A：In the third quarter, total revenue increased by 22.4 percent compared to the previous year, reaching 19.36 million. Annual active users and new users reached all-time highs.
Q：什么趋势正在中国本地商业行业中出现？
A：中国的本地商业行业看到了数字化转型的巨大潜力，这给行业带来了新的挑战和机遇。该行业致力于利用技术和创新推动增长，改善人们的生活质量。The local commerce industry in China is seeing a big potential for digital transformation, which is bringing both new challenges and opportunities. The industry is focused on using technology and innovation to drive growth and improve the quality of life for people.
Q：How is the company's delivery service performing in terms of demand?
A：La empresa está llevando a cabo con éxito su propio servicio de entrega a demanda, alcanzando a 98 millones de personas en agosto. Ha mejorado su formato de proyecto y brindado apoyo a los comerciantes para mejorar la eficiencia operativa.
Q：What is the effect of the company's platform on user experience and demand?
A：La plataforma de la empresa tiene una base de usuarios en crecimiento y se ha convertido en una nueva tendencia para los consumidores jóvenes, con más de cien millones de usuarios activos anuales, la mayoría de los cuales tienen treinta y cinco años o menos. Tiene más de cinco mil marcas participando y ha mejorado la experiencia del usuario al analizar diferentes escenarios de oferta y demanda.
Q：What is the purpose of the company collaborating with different entities?
A：The company's partnership with more than two hundred countries aims to offer a comprehensive range of online services, including location, navigation, and traffic conversion, to increase market size and support high-quality growth.
Q：Cómo está apoyando la empresa a los comerciantes y cuál es el impacto de las compras instantáneas?
How is the company supporting merchants and what is the impact of instant shopping?
A：The company is providing significant support to merchants who are focused on product development and business innovation. The instant shopping format is driving demand, with the third quarter seeing an average daily volume of over ten million.
Q：Which strategic partnerships have been announced, and how are they anticipated to benefit the company?
A：The company has announced a strategic partnership with major insurance companies and aims to empower more startups, expand their reach, and help them achieve higher growth through offline integration in the coming month.
Q：¿Qué mejoras se han hecho para los mensajeros y cómo planea la empresa apoyarlos?
What improvements have been made for couriers and how does the company plan to support them?
A：In the third quarter, the company implemented and enhanced initiatives to improve courier productivity and support, such as the implementation of effective solutions and the introduction of a training program. The company also emphasized the importance of couriers' work and their role in the success of the company's delivery business.
Q：¿Cómo le ha ido al negocio de los hoteles y los viajes en el tercer trimestre?
A：The hotel and travel industry has experienced another period of growth in the third quarter, with a year-over-year increase of over fifty percent in volume and a significant rise in annual active users.
Q：What are the company's plans for its eastern business?
A：The company's eastern division has embarked on new initiatives this year with the aim of becoming a trusted partner for merchants. It is focused on assisting them in navigating various business scenarios and achieving high-quality growth through effective marketing strategies. The company is improving its operations, utilizing specialized techniques, and exploring various models to support its expansion.
Q：How does the merchant join rate impact the company's strategy and user experience?
A：With over fifty percent of merchants joining the program, the company has optimized its subsidy strategy to improve traffic diversion efficiency for high-quality food merchants. This has resulted in increased purchase frequency and higher traffic and transaction volume from participating vendors.
Q：How is the company using the economy and consumption trends to increase its installation business?
A：The company is taking advantage of the growing economy, especially the cash economy, and increasing consumption among the younger generation. It is providing local versions with improved traffic distribution and online operational tools, and offering consumers high-quality value-for-money options, leading to an acceleration in volunteer activities and business installations.
Q：What growth has been observed in the domestic hotel industry, and what strategies have contributed to this?
A：In the third quarter, the domestic hotel industry continued to grow steadily. The company worked closely with industry partners to offer a diverse range of high-star hotels at various price points. New marketing strategies were implemented to increase demand in popular categories. Partnerships with hotel chains through membership programs, marketing campaigns, and packaged deals have strengthened the company's marketing position, especially in lower-tier markets and with younger consumers.
Q：How is the company's membership program contributing to the hotel business and new initiatives?
A：The company has introduced several membership programs for guests who stay at multiple hotels, which has successfully expanded the hotel business's customer base. New initiatives are aimed at improving operational efficiency in grocery, retail, hardware, and software services. These new initiatives have continued to show healthy growth, reducing losses over time and enhancing the ecosystem by offering a wide range of products and services, leading to increased user retention and engagement.
Q：¿Cuáles son los planes de la empresa para la expansión internacional?
A：International expansion continues to be a primary strategy for the company in the upcoming decade. On October 9th, Kita was officially launched in Riyadh, indicating a significant milestone in the company's journey from China to global markets. The company aims to deliver top-notch services and projects to a larger number of merchants and consumers worldwide, thus expanding its reach to a wider audience.
Q：Could you please provide the company's strategy for digital transformation in local commerce?
A：The company believes that there is huge potential for local commerce in the digital transformation. It intends to actively adjust to the changing environment, introduce innovations, and lead the digital transformation in its industry. The company's goal is to meet consumer demands, assist merchants in their business operations, offer career advancement opportunities for delivery personnel, and strengthen partnerships with all ecosystem partners. Moreover, the company will continue to fulfill its social responsibilities, work together with partners through various challenges, and generate more value for society.
Q：How have the company's financial results been impacted by operational improvements?
A：During the third quarter, the company experienced a strong growth in both their business and financial results, with a 22.4 percent year-over-year increase in revenue from photography and music, reaching RMB 93.6 billion. The cost of revenue ratio also decreased by four percentage points to 60.7 percent, thanks to improved growth margins in the retail business and lower delivery costs as a percentage of revenue. The company's emphasis on quality growth and operational efficiency led to a significant year-over-year increase in total segment operating profit and operating margin.
Q：What is the importance of having a strong amount of cash on hand and increasing the amount of cash generated from day-to-day business operations compared to the previous year?
A：As of September 30, 2024, the company had a strong cash position with cash, cash equivalents, and short-term investments totaling RMB 134.2 million. This is a significant increase from the previous year, with cash generated from operating activities totaling RMB 15.2 million. The improvement in financial position is the result of the company's focus on quality growth and increased operating efficiency.
Q：What are the reasons for the increase in demand for the company's hotel and travel installation services?
A：The company's hotel and travel businesses have seen fast growth, with strong demand for local services. Thirteen categories such as entertainment, shopping, and dining have experienced significant growth. The restructuring of the organization has improved collaboration and cross-selling between different business segments, leading to an increase in the number of core users for hotel and travel services.
Q：How is the company's strategy for entering the lower-tier market helping to drive its business growth?
A：The company's strategy to enter the lower-tier market has led to an improved market position and increased transaction volume in installation issues, thanks to the rapid growth in smaller cities. This strategy has also helped drive a significant year-over-year increase in the company's profit and operating margin in the color segment.
Q：What are the main factors that are causing the decrease in the core local common operating margin?
A：The decrease in the basic operating margin of the local market was due to feasibility issues and increased spending on user incentives, promotions, and advertising to boost demand during the summer season. The company also mentioned efforts to increase public awareness of new products, especially through membership programs.
Q：What were the main factors contributing to the segment's growth compared to the previous year?
A：El crecimiento interanual del segmento universitario se debió principalmente al desarrollo de negocios minoristas de bienes, especialmente de QD Yan y la cadena de supermercados JUNGO, lo que contribuyó a una reducción en la proporción de pérdida operativa.
Q：What efficiency improvements and profit margins has the company maintained this quarter?
A：This quarter, the company has continued to achieve efficiency improvements while maintaining health and profitability, resulting in a collective profit. It has also reported a decrease in total shares and a decrease in company officials.
Q：¿Qué iniciativas se han anunciado para apoyar a la industria de la restauración y ayudar a los comerciantes?
What initiatives have been announced to support the catering industry and help merchants?
A：In order to support the catering industry and help merchants better overcome current challenges, a series of initiatives were announced at the catering conference in September. These initiatives include promoting innovation in the industry, addressing merchant concerns about intense competition, streamlining marketing tools for merchants, and providing subsidies to support merchants.
Q：Qué piensa hacer la empresa para apoyar el comercio local y el negocio de entrega?
A：The company aims to be a reliable partner for restaurant owners, supporting their growth and managing customer relationships through technology. It will also provide funding to help improve supply chain efficiency, enhance service quality, and introduce more valuable products, as well as support the development of innovative business models and high-quality brands.
Q：Qué medidas específicas se han tomado para apoyar a los comerciantes pequeños y medianos?
What specific measures have been taken to support small and medium-sized merchants?
A：For small and medium-sized merchants, the company has extended the new factory support period and provided online operating tools and services to assist with online operations and marketing. They have also increased the support period from seven to 15 days.
Q：What is the company's perspective on the growth potential of the delivery business?
A：La empresa cree que el negocio de entregas tiene un potencial significativo para un crecimiento futuro, con la creciente adopción de servicios "a pie de casa" por parte de los hogares. Se considera que el negocio es una elección de estilo de vida para un número creciente de personas, con una gran base de usuarios y un negocio digital bien posicionado para beneficiarse del crecimiento de la industria.
Q：What impact can be anticipated from the recent stimulus policies on the business?
A：Recent stimulus policies are expected to boost consumer confidence and unlock the potential for economic growth in China. The positive impact of these policies is likely to drive consumer spending and create new opportunities for business growth.
Q：What strategies have been implemented to increase the company's resilience and sustain the growth of core local commerce?
A：The strategies implemented to increase resilience include the ongoing integration and improvement of the sample program, which boosts sales of crops, frequency of purchases, and consumption categories of consumers. The company is confident that its main local business will continue to experience healthy growth thanks to these proactive measures.
Q：How are changes in consumption trends creating challenges for the company, and what is their potential impact?
A：The company recognizes that changes in consumer trends present challenges but believes that there will be continued growth in the demand for retail business, especially at the current level. The scheduling is benefiting from online product descriptions and is continuing to grow on both scheduled and on-demand sides, showing an adaptation to these trends for growth.
Q：What measures have been taken to support growth and increase purchasing frequency in the food delivery and shopping industries?
A：To promote growth and increase how often customers make purchases, the company may consider combining food delivery and shopping services, as well as boosting purchase frequency among users. There is significant potential for business expansion, particularly as consumer trends change.
Q：How will the company continue to promote its scientific membership program and explore opportunities for cross-selling and partnerships?
A：The company plans to continue expanding its scientific membership program, as well as exploring additional opportunities for cross-selling and expanding trade partnerships. These strategies align with the company's emphasis on the scientific retail business, with the goal of achieving high-quality growth, reaching strategic objectives, and ensuring sustainable profit growth.
Q：How does the company maintain a balance between emphasizing growth and profitability?
A：The company places importance on prioritizing well-being as well as achieving profitable and high-quality growth. It is committed to maintaining a strong economic system, offering support to merchants and platforms. Investments in the ecosystem are a top priority, with the aim of achieving high-quality growth, meeting strategic goals, and ensuring sustainable profit growth.
Q：What is the company's strategy for growth in online retail and how will the establishment program contribute to this goal?
A：The company's strategy for increasing online retail includes expanding the 'Three Huiyuan' program to speed up the adoption of instant commerce, expanding the supply, and closely aligning with consumer preferences. Additionally, it plans to enhance technology and infrastructure, and increase involvement in the supply chain. The 'Three Huiyuan' program aims to offer extensive support resources for merchants to help facilitate this growth.
Q：How does the company intend to continue expanding and entering lower-tier markets?
A：The company intends to keep growing and reaching new markets by concentrating on the growth potential in each city and town where its delivery services are offered. The 'Three Huiyuan' program is helping to increase demand, and the company has recently introduced the 'Fangxing Plan' to offer support to major merchants. The goal is to increase the number of retailers on its platform, improve the variety and quality of products, and enhance the overall consumer experience.
Q：What are the company's expectations for the hotel and travel segment in lower-tier cities, including the competitive landscape and operating margin?
A：The company's expansion of the 'Three Huiyuan' program to key cities has resulted in advancements in product, merchant, and consumer locations for instructor travel. The number of participating merchants has increased by over 50%, and the program is expected to improve consumer satisfaction and member value. In the future, the company plans to expand the range of 'Shen' membership categories and enhance commercial efficiency through refined and personalized operations. This is projected to effectively attract traffic, increase transaction volume, and enhance user engagement and investment. The company remains committed to the long-term, healthy growth of the local commerce industry, with a focus on differentiation from major competitors and business models. Competition in the industry has become more rational and efficiency-driven, with merchants increasingly prioritizing these aspects. The company aims to maintain a strong market position in its core market and continue growing in lower-tier markets.
Q：What strategies are being implemented to improve market position in the competitive environment?
A：The company is focused on integrating marketing with a range of services in different scenarios and prototypes to take advantage of supply chain strengths. Their goal is to increase business traffic for retailers and enhance overall operations.
Q：What is the company's strategy for monitoring competitors and innovating products?
A：La empresa seguirá monitoreando de cerca a sus competidores, pero dará prioridad a la innovación en la forma de los productos, la mejora de las operaciones y la inversión eficiente.
Q：How is the market performing and what are the expectations for future growth?
A：The company's primary focus is on increasing traffic and preserving profit margins, despite the potential impact of various factors on these margins. The company currently holds a strong position and is working towards further improvement, anticipating future market growth and continued success as competition levels off.
Q：Can you explain how the expansion into the Middle East market, particularly in Saudi Arabia, is going and how it is being evaluated?
A：The company has started operating in Saudi Arabia, beginning in a small city near Riyadh and later expanding to Reykjavik city. They have been in operation there for two months and have seen promising progress, receiving positive feedback from customers, merchants, and local delivery partners. They recognize the competition from local businesses but feel they can offer new value propositions. The company intends to concentrate on growth in Saudi Arabia and may expand to other cities in the Middle East in the future.
Q：Could you please share the company's strategy for expanding overseas and how it plans to evaluate opportunities and potential risks?
A：The company's long-term strategy includes expanding globally and establishing a presence in multiple countries. They plan to offer their products and services to audiences around the world and provide value to consumers and local businesses. The company intends to expand globally gradually, taking the time to understand local culture, business environment, and regulatory requirements. They aim to make food delivery a regular habit for a larger population, similar to their success in China.
Q：What is the company's strategy for allocating capital and repurchasing shares?
A：The company has bought back a large number of shares, showing a prioritization of capital allocation and share repurchases as a key part of their strategy to increase long-term shareholder value. Additionally, they have issued senior notes to strengthen their capital structure and plan to continue reducing the total number of outstanding shares in the future. Although they are unable to promise a specific amount of cash for share repurchases each year, they will stay adaptable and base decisions on the requirements of business development.
