MEITUAN(03690) 国信证券·2024-06-24 07:02Investment Rating - The report assigns an "Outperform" rating for the stock, indicating that the company's stock performance is expected to exceed the market benchmark by more than 10% [158]. Core Insights - The report outlines the current development stage of Douyin's local life services and explores the differentiated competitive strategies between Douyin and Meituan this year [3]. - Douyin's local life service business has reached 4.5 million cooperative stores, while Meituan's active merchant count was approximately 9.3 million in 2022, growing over 60% to an estimated 14.88 million in 2023 [5][106]. - Overall, Douyin's GTV growth has been relatively weak this year, attributed not only to organizational adjustments but also to strategic decisions based on its development stage [12][166]. Summary by Sections 1. Meituan's In-store Travel Business Progress - Meituan's strategy focuses on consolidating long-term competitive advantages rather than merely pursuing market share [30]. - The company has adopted a subsidy strategy to stabilize its market share, with GTV growth of approximately 60% in Q1 2024 [34][39]. - Meituan's operating profit margin (OPM) has decreased from 48% in Q1 2023 to 29% in Q4 2023 due to increased subsidies and operational costs [21][39]. 2. Douyin's Local Life Business Progress - Douyin's merchant coverage is estimated to be about 30% of Meituan's, with stable growth in restaurant merchants and ongoing development of new categories [26][144]. - The GTV growth in Douyin's local life services is driven by an increase in merchant coverage and category expansion, with a reported GMV growth of 256% in 2023 [105][86]. - Douyin's live streaming has become a new growth point for the travel industry, with significant increases in order volumes [112][129]. 3. Competitive Dynamics - The competition between Douyin and Meituan is characterized by a partial misalignment, with Douyin focusing on large chain merchants while Meituan caters to small and medium-sized businesses [51][56]. - Douyin's operational model is more suited for larger merchants due to higher costs associated with advertising and influencer marketing, while Meituan's model supports long-term operations for smaller merchants [60][77]. - Douyin is exploring differentiated new business opportunities rather than relying on price wars, with a focus on product innovation and category expansion [163][166].