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Meituan (HK:3690)
:3690

Meituan (3690) AI Stock Analysis

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HK

Meituan

(OTC:3690)

Rating:69Neutral
Price Target:
HK$144.00
▲(2.35%Upside)
Meituan Dianping's overall stock score reflects its strong financial performance and strategic growth initiatives, tempered by bearish technical indicators and competitive challenges. The company's commitment to innovation and expansion supports a positive long-term outlook, but short-term risks from competition and market momentum weigh on the score.
Positive Factors
Financial Performance
Meituan's revenue reached RMB86.6bn, up 18.1% year-over-year, with adjusted net profit up 46.2% year-over-year, mainly due to better margin for the local commerce sector and efficient operating expense control.
Growth Strategy
Meituan recently announced its entry into Brazil’s food delivery market, with plans to invest US$1bn over the next five years, viewing Brazil as a suitable market.
Market Position
Meituan operates an extensive fulfillment network of approximately 7.5 million riders and over 9 million active merchants, contributing to its leading position in the online food delivery market.
Negative Factors
Competitive Pressure
Intensifying competition is expected to put pressure on revenue and earnings in the food delivery segment.
Expansion Costs
Higher loss from Keeta expansion is due to faster-than-expected expansion, posing incremental losses in the new initiative segment.
Investment Impact
The company lowered its FY25/26 adjusted net profit by 9% and 5%, respectively, primarily to account for higher investment in Keeta in Saudi Arabia.

Meituan (3690) vs. iShares MSCI Hong Kong ETF (EWH)

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 Dianping generates revenue through a diverse set of revenue streams, primarily focusing on transaction-based commissions, online marketing services, and other value-added services. The company earns commissions by facilitating transactions between consumers and merchants, particularly in the food delivery and in-store dining sectors. Additionally, Meituan provides online marketing services to merchants looking to promote their offerings on its platform, which contributes significantly to its earnings. The company also generates income from its hotel and travel booking services by charging commissions on reservations. Strategic partnerships with various local businesses and continuous technological advancements further bolster Meituan's revenue potential.

Meituan Earnings Call Summary

Earnings Call Date:May 26, 2025
(Q1-2025)
|
% Change Since: 2.78%|
Next Earnings Date:Aug 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balance between positive developments such as strong revenue growth, successful expansion in overseas markets, and advancements in AI, against challenges like intensified competition in the food delivery sector and ongoing challenges in grocery retail. The company is taking strategic steps to maintain its competitive edge and is committed to long-term growth.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Meituan reported an 18.1% year-over-year increase in revenue for the first quarter of 2025, reaching RMB86.6 billion.
Expansion of Meituan Instashopping
Meituan Instashopping saw robust growth with over 500 million transacting users and expanded into new product categories, achieving over 60% order growth in non-food categories.
Successful Expansion in Overseas Markets
Keeta has become the largest food delivery player in Hong Kong and expanded operations to all major cities in Saudi Arabia. Meituan announced plans to invest $1 billion in the Brazilian market over the next five years.
Commitment to Courier Welfare
Meituan announced a pilot pension program and occupational injury insurance for couriers, covering over 7 million couriers and providing RMB1.5 billion in insurance coverage.
AI and Technology Advancements
Meituan has advanced its AI capabilities, with 52% of new code generated by AI and plans to launch AI-powered business decision assistants for the food service industry.
Negative Updates
Intensified Competition in Food Delivery
Meituan faces increased competition from new entrants like JD.com and Ele.me, each announcing RMB10 billion subsidy programs, impacting Meituan's market share and potentially its profitability.
Potential Profitability Impact
Due to intensified competition, Meituan expects volatility in short-term financial results and a significant decrease in operating profit for Core Local Commerce in Q2.
Challenges in Grocery Retail with Meituan Select
Meituan Select faces challenges in lower-tier markets, necessitating a focus on testing and validating its unit economics rather than expanding its scale.
Company Guidance
During the Meituan First Quarter 2025 Earnings Conference Call, management provided guidance and insights into the company's performance and strategic initiatives. Revenue for the first quarter increased by 18.1% year-over-year to RMB86.6 billion, with growth driven by both annual transacting users and active merchants reaching new highs. The company plans to invest RMB100 billion over the next three years to drive high-quality growth in the food service industry, focusing on empowering merchants, elevating supply quality, and stimulating consumption. Meituan's Core Local Commerce segment saw revenue growth of 17.8%, reaching RMB64.3 billion, with an operating profit of RMB13.5 billion. The new initiative segment, including Meituan Instashopping, reported a 19.2% increase in revenue. Management also highlighted the company's commitment to enhancing courier welfare, including plans to roll out occupational injury insurance nationwide by next year, and a new pension pilot program for couriers. Despite intensified competition, Meituan remains confident in maintaining market leadership and plans to leverage AI technology to refine user experience and operational efficiency.

Meituan Financial Statement Overview

Summary
Meituan Dianping has demonstrated strong financial performance with robust revenue and profit growth. The company has improved its financial health over recent years, transitioning from losses to profitability. The balance sheet is healthy with moderate leverage, and cash flow has significantly improved, reflecting strong operational efficiency.
Income Statement
85
Very Positive
Meituan Dianping has demonstrated strong revenue growth with a 21.96% increase from the previous year. The company maintains a solid gross profit margin of 38.45% and an impressive net profit margin of 10.61%. Additionally, the EBIT margin stands at 10.91% and the EBITDA margin at 12.30%, indicating efficient operational performance. The company's profitability metrics have shown a significant improvement over the past few years, transitioning from losses in 2021 to strong profits in 2023 and 2024.
Balance Sheet
80
Positive
The balance sheet of Meituan Dianping shows a healthy financial position with a debt-to-equity ratio of 0.36, indicating moderate leverage. The equity ratio is 53.23%, reflecting a balanced capital structure. Return on Equity (ROE) is at a robust 20.74%, showcasing effective use of equity to generate profits. The company's ability to maintain substantial cash reserves bolsters financial stability, despite a substantial increase in total liabilities over the years.
Cash Flow
88
Very Positive
Cash flow analysis reveals a strong free cash flow growth rate of 69.85% from the previous year, supporting substantial operational cash generation. The operating cash flow to net income ratio of 1.60 indicates strong cash flow generation relative to net income. The free cash flow to net income ratio is 1.60, highlighting efficient cash management and conversion of income into cash flows. Meituan's cash flow has significantly improved, transitioning from negative free cash flow in earlier years to robust positive figures in recent periods.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
337.59B276.74B219.95B179.13B114.79B
Gross Profit
129.78B97.19B61.75B42.47B34.05B
EBIT
36.84B13.42B-5.13B-21.99B-521.75M
EBITDA
41.51B23.44B4.56B-13.56B4.67B
Net Income Common Stockholders
35.81B13.86B-6.69B-23.54B4.71B
Balance SheetCash, Cash Equivalents and Short-Term Investments
168.24B145.16B112.03B116.80B61.09B
Total Assets
324.35B293.03B244.48B240.65B166.57B
Total Debt
61.51B60.62B58.09B58.92B24.06B
Net Debt
-9.32B27.28B37.93B26.41B6.96B
Total Liabilities
151.75B141.07B115.78B115.10B68.94B
Stockholders Equity
172.66B152.01B128.76B125.61B97.69B
Cash FlowFree Cash Flow
46.15B33.64B5.68B-13.02B-7.35B
Operating Cash Flow
57.15B40.52B11.41B-4.01B8.48B
Investing Cash Flow
10.21B-24.66B-14.71B-58.49B-21.23B
Financing Cash Flow
-30.41B-2.78B-9.99B78.60B17.42B

Meituan Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price140.70
Price Trends
50DMA
142.03
Negative
100DMA
150.80
Negative
200DMA
153.11
Negative
Market Momentum
MACD
-1.05
Negative
RSI
53.48
Neutral
STOCH
79.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3690, the sentiment is Neutral. The current price of 140.7 is above the 20-day moving average (MA) of 136.78, below the 50-day MA of 142.03, and below the 200-day MA of 153.11, indicating a neutral trend. The MACD of -1.05 indicates Negative momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3690.

Meituan Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
HK$2.17T15.3113.02%0.86%3.92%27.80%
80
Outperform
HK$404.50B8.0519.79%3.02%7.67%90.63%
69
Neutral
HK$834.59B19.5523.82%19.20%156.71%
62
Neutral
$6.93B11.252.95%3.88%2.69%-24.71%
48
Neutral
HK$1.34B-4.60%5.61%29.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3690
Meituan
140.70
30.30
27.45%
HK:9618
JD.com, Inc. Class A
130.60
17.83
15.81%
HK:9988
Alibaba Group Holding Ltd.
114.60
39.14
51.87%
HK:9991
Baozun, Inc. Class A
7.61
1.16
17.98%

Meituan Corporate Events

Meituan Reports Strong Q1 2025 Financial Performance
May 26, 2025

Meituan has reported a significant increase in its financial performance for the first quarter of 2025, with revenues rising by 18.1% to RMB 86.6 billion compared to the same period in 2024. The company’s operating profit more than doubled, reaching RMB 10.6 billion, driven by strong growth in its core local commerce and new initiatives segments, indicating a robust market position and potential for future expansion.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$130.00 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan Strengthens Governance with New Nomination Committee Appointment
May 26, 2025

Meituan has announced the appointment of Ms. Yang Marjorie Mun Tak as a member of its Nomination Committee, effective May 26, 2025. This strategic appointment is expected to enhance the governance structure of the company, potentially impacting its decision-making processes and reinforcing its commitment to maintaining robust corporate governance practices.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$130.00 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan Announces Board of Directors and Their Roles
May 26, 2025

Meituan has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes both executive and independent non-executive directors, with specific individuals assigned to various board committees such as audit, remuneration, nomination, and corporate governance. This announcement provides insights into the governance structure of Meituan, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$130.00 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan Updates Nomination Committee Terms to Enhance Governance
May 26, 2025

Meituan has updated the terms of reference for its Nomination Committee, which was originally established in 2018. The committee is responsible for identifying and recommending candidates for the board of directors, overseeing board performance evaluations, and developing nomination guidelines. The committee is composed mainly of independent non-executive directors, ensuring compliance with Hong Kong Stock Exchange listing rules. These updates aim to enhance the governance structure and ensure a diverse and effective board, which could strengthen Meituan’s industry positioning and stakeholder confidence.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$130.00 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan Proposes Amendments to Articles of Association
May 15, 2025

Meituan has announced proposed amendments to its Articles of Association to align with the Core Shareholder Protection Standards and Corporate Governance Code of the Hong Kong Stock Exchange. These amendments aim to facilitate virtual shareholder meetings and electronic voting, update the nomination committee’s terms of reference, and make other clarifications. The adoption of these amendments is subject to shareholder approval at the upcoming annual general meeting in June 2025.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$130.00 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan Announces Annual General Meeting for Strategic Resolutions
May 15, 2025

Meituan has announced its upcoming annual general meeting scheduled for June 9, 2025, where key resolutions will be considered. These include the adoption of financial statements for 2024, re-election of independent non-executive directors, and authorization for the board to manage director remuneration and issue additional Class B shares. This meeting is crucial for Meituan’s strategic planning and governance, potentially impacting its market operations and shareholder interests.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$130.00 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan Schedules Board Meeting to Review Q1 2025 Financial Results
May 14, 2025

Meituan has announced that its board of directors will hold a meeting on May 26, 2025, to consider and approve the unaudited financial results for the first quarter of 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$130.00 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan Grants Over 30 Million RSUs to Employees and Service Providers
Apr 25, 2025

Meituan has announced the grant of 30,532,990 restricted share units (RSUs) as part of its Post-IPO Share Award Scheme. The RSUs are allocated to employee participants and service providers, with a vesting period ranging from 24 to 48 months for employees and 24 to 36 months for service providers. This initiative aims to align the interests of the grantees with the company’s long-term growth and profitability, encouraging contributions towards enhancing the company’s value.

Meituan Dianping Reports Strong Financial Growth in 2024
Mar 21, 2025

Meituan Dianping reported a significant financial performance improvement for the year ended December 31, 2024, with a 22% increase in revenues and a substantial rise in operating profit by 174.6% compared to the previous year. The company’s adjusted EBITDA and net profit also saw impressive growth, indicating strong operational efficiency and market positioning, which could positively impact stakeholders and reinforce its competitive edge in the service industry.

Meituan to Review Annual Financial Results on March 21, 2025
Mar 11, 2025

Meituan has announced that its board of directors will hold a meeting on March 21, 2025, to consider and approve the company’s annual results for the year ending December 31, 2024. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, impacting stakeholders and potentially influencing its market position.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.