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Meituan (HK:3690)
:3690
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Meituan
(OTC:3690)
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Rating:64Neutral
Price Target:
HK$107.00
▲(4.59% Upside)
Meituan's overall stock score reflects strong financial performance and user growth, but is tempered by bearish technical indicators and competitive pressures impacting profitability. The moderate valuation and strategic challenges further influence the score.
Positive Factors
Negative Factors
Meituan (3690) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
$624.55B
Dividend YieldN/A
Average Volume (3M)88.50M
Price to Earnings (P/E)19.4
Beta (1Y)1.62
Revenue Growth17.67%
EPS Growth33.64%
CountryHK
Employees114,731
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.27
Shares Outstanding5,531,655,000
10 Day Avg. Volume95,802,719
30 Day Avg. Volume88,503,984
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)5.05
Price to Sales (P/S)2.59
P/FCF Ratio18.91
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit5.99
Enterprise Value/Ebitda20.92
Forecast
1Y Price Target
$124.70Price Target Upside21.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
Meituan Business Overview & Revenue Model
Company DescriptionMeituan operates an e-commerce platform for various services. It operates through Food Delivery; In-store, Hotel & Travel; and New Initiatives and Others segments. The Food delivery segment provides consumers place orders of food prepared by merchants. The In-store, Hotel & Travel segment offers consumers purchase local consumer services provided by merchants in numerous in-store categories or make reservations for hotels and attractions. The New Initiatives and Others segment sales goods from B2B food distribution services and Meituan grocery; and various businesses, such as Meituan Instashopping, community e-commerce, bike-sharing and electric mopeds, and micro-credit services. The company was formerly known as Meituan Dianping and changed its name to Meituan in October 2020. Meituan was founded in 2003 and is headquartered in Beijing, China.
How the Company Makes MoneyMeituan generates revenue through a multi-faceted business model that includes commission fees, advertising services, and subscription services. The company's primary revenue stream is derived from commission fees charged to merchants on each transaction facilitated through its platform, particularly in the food delivery and in-store dining segments. Additionally, Meituan earns advertising revenue by offering promotional and marketing services to merchants aiming to increase their visibility and attract more customers. The company also generates income through subscription services, where merchants pay for access to premium features and analytics tools. Significant partnerships with local restaurants, hotels, and service providers further bolster Meituan's earnings by ensuring a diverse range of offerings and enhancing customer satisfaction.
Meituan Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 21, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Meituan's strong user growth and market leadership in on-demand delivery, with significant achievements in user engagement and expansion initiatives. However, the company faces increased costs and intense competition, leading to significant declines in profitability and strategic scaling back in some segments.Q2-2025 Updates
Positive Updates
Revenue Growth
Meituan reported a revenue increase of 11.7% year-over-year, reaching RMB 91.8 billion for the second quarter of 2025.
User Engagement
Total Monthly Active Users (MAU) exceeded 600 million, with the major app surpassing 500 million MAU. Annual transaction frequency reached a new record, indicating strong user engagement.
On-Demand Delivery Milestone
Meituan's daily on-demand delivery orders surpassed 150 million, further solidifying market leadership.
Expansion of Branded Satellite Stores
Meituan partnered with over 800 restaurant chains to launch more than 5,500 branded satellite stores, with plans to expand to over 10,000 by the end of the year.
Instashopping Growth
Meituan Instashopping saw strong growth, with GTV achieving a much stronger growth than order volume, and 20 million new users trying the service.
In-store Business Growth
Order volumes surged over 40% year-over-year, with annual transacting users increasing by more than 20%.
Negative Updates
Increased Cost and Operating Loss
Cost of revenue ratio increased by 8.1 percentage points year-over-year to 66.9%, leading to a significant decline in total segment operating profit and adjusted net profit to RMB 1.8 billion and RMB 1.5 billion, respectively.
Intense Competition
The on-demand delivery sector faced unprecedented competitive intensity, resulting in record-high industry-wide subsidies.
Profitability Decline
The operating profit of core local commerce declined year-over-year to RMB 3.7 billion, with margin contracting significantly.
Strategic Scaling Back of Meituan Select
Meituan announced a significant scaling back of Meituan Select, an indication of challenges faced in this segment.
Company Guidance
During the Meituan Second Quarter 2025 Earnings Conference Call, the company reported a year-over-year revenue increase of 11.7% to RMB 91.8 billion. The total monthly active users (MAU) exceeded 600 million, with the major app surpassing 500 million MAU, and average user transaction frequency hitting at least once a week. Despite intense competition, Meituan's on-demand delivery orders surpassed 150 million per day in July. The company expanded its network by partnering with over 800 restaurant chains to launch more than 5,500 branded satellite stores and plans to reach over 10,000 by year-end. Meituan also announced the expansion of its occupational injury insurance to cover all couriers in 17 provinces and cities, along with launching pension insurance subsidy programs set to cover over 1 million couriers nationwide by year-end. The second quarter saw significant growth in Meituan Instashopping, with 20 million new users trying the 30-minute delivery service, and the GTV of over 60 product categories doubling during the June 18 shopping festival. Meituan's overseas expansion continues with Keeta's growth in Saudi Arabia, where it operates in 20 cities, and a recent launch in Qatar.Meituan Financial Statement Overview
Summary
Meituan demonstrates strong financial performance with significant revenue growth and improved profitability margins. The company maintains a healthy balance sheet with a conservative debt-to-equity ratio and robust cash flow generation. However, rising liabilities should be monitored.Income Statement
Meituan's income statement shows a strong improvement in profitability over the years. The TTM data reveals a substantial gross profit margin of 38.9% and a net profit margin of 11.5%, indicating efficient cost management. The EBIT margin has improved significantly to 12.0%, reflecting enhanced operational efficiency. The company has also exhibited robust revenue growth, with a 26.7% increase from 2023 to 2024 and a further 3.9% growth in the TTM period. These positive trends highlight Meituan's strengthening market position and profitability trajectory.85
Very Positive
Balance Sheet
Meituan's balance sheet is characterized by a healthy equity position and manageable leverage. The debt-to-equity ratio stands at 0.34, indicating a conservative approach to financing through debt. The return on equity (ROE) for the TTM is a commendable 22.0%, signaling effective use of shareholders' funds. The equity ratio is 55.2%, reflecting a strong equity base relative to total assets. However, the company should monitor its liabilities, which have increased alongside its growth.78
Positive
Cash Flow
The cash flow statement indicates robust cash generation, with a TTM operating cash flow of 61.3 billion and a significant free cash flow of the same amount, showcasing efficient capital management. The free cash flow to net income ratio of 1.51 and operating cash flow to net income ratio of 1.51 further emphasize strong cash conversion capabilities. Moreover, the impressive growth in free cash flow from 2023 to 2024 by 37.2% and a continued rise into the TTM period underscores Meituan's solid cash flow management.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 360.46B | 337.59B | 276.74B | 219.95B | 179.13B | 114.79B |
| Gross Profit | 133.03B | 129.78B | 97.19B | 61.75B | 42.47B | 34.05B |
| EBITDA | 38.06B | 41.51B | 23.44B | 340.71M | -13.56B | 1.38B |
| Net Income | 29.51B | 35.81B | 13.86B | -6.69B | -23.54B | 4.71B |
Balance Sheet | ||||||
| Total Assets | 330.20B | 324.35B | 293.03B | 244.48B | 240.65B | 166.57B |
| Cash, Cash Equivalents and Short-Term Investments | 171.02B | 168.24B | 145.16B | 112.03B | 116.80B | 61.09B |
| Total Debt | 50.98B | 61.51B | 60.62B | 58.09B | 58.92B | 24.06B |
| Total Liabilities | 145.90B | 151.75B | 141.07B | 115.78B | 115.10B | 68.94B |
| Stockholders Equity | 184.36B | 172.66B | 152.01B | 128.76B | 125.61B | 97.69B |
Cash Flow | ||||||
| Free Cash Flow | 52.78B | 46.15B | 33.64B | 5.68B | -13.02B | -7.35B |
| Operating Cash Flow | 47.01B | 57.15B | 40.52B | 11.41B | -4.01B | 8.48B |
| Investing Cash Flow | 10.78B | 10.21B | -24.66B | -14.71B | -58.49B | -21.23B |
| Financing Cash Flow | -11.84B | -30.41B | -2.78B | -9.99B | 78.60B | 17.42B |
Meituan Technical Analysis
Negative
102.30
Price Trends
114.48
Negative
123.72
Negative
139.57
Negative
Market Momentum
-3.16
Negative
42.44
Neutral
45.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3690, the sentiment is Negative. The current price of 102.3 is above the 20-day moving average (MA) of 101.61, below the 50-day MA of 114.48, and below the 200-day MA of 139.57, indicating a neutral trend. The MACD of -3.16 indicates Negative momentum. The RSI at 42.44 is Neutral, neither overbought nor oversold. The STOCH value of 45.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3690.
Meituan Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 425.49B | 9.64 | 17.02% | 2.85% | 14.18% | 32.25% | |
74 Outperform | 3.32T | 20.20 | 14.44% | 1.14% | 5.08% | 127.82% | |
64 Neutral | $624.55B | 19.40 | 17.12% | ― | 17.67% | 33.64% | |
57 Neutral | 1.93B | -9.40 | -4.73% | ― | 7.51% | 30.41% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
HK:3690
Meituan
102.30
-49.90
-32.79%
HK:9618
JD.com, Inc. Class A
137.60
2.61
1.93%
HK:9988
Alibaba Group Holding Ltd.
172.00
75.86
78.91%
HK:9991
Baozun, Inc. Class A
10.69
3.75
54.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.