Meituan (3690) AI Stock Analysis

• Market Cap: $610.52B
• Dividend Yield: N/A
• Average Volume (3M): 46.79M
• Price to Earnings (P/E): 19.2
• Beta (1Y): 1.60
• Revenue Growth: 17.67%
• EPS Growth: 33.74%
• Country: HK
• Employees: 114,731
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.27
• Shares Outstanding: 5,531,896,500
• 10 Day Avg. Volume: 50,211,529
• 30 Day Avg. Volume: 46,788,475
• PEG Ratio: 0.15
• Price to Book (P/B): 5.05
• Price to Sales (P/S): 2.59
• P/FCF Ratio: 18.91
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.70
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 16.13
• 1Y Price Target: $127.15
• Price Target Upside: 23.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 28
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$114.00 ▲(10.36% Upside)

Meituan's strong financial performance and market leadership in user growth are significant strengths. However, challenges such as increased costs, intense competition, and declining profitability weigh on the overall score. The technical indicators suggest potential short-term weakness, while the valuation remains moderate.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, reinforcing Meituan's position in the e-commerce sector.

User Engagement

High user engagement reflects a strong customer base and loyalty, which can drive future revenue and support long-term growth.

On-Demand Delivery Milestone

Achieving high delivery volumes solidifies Meituan's market leadership, enhancing its competitive edge in the on-demand service industry.

Negative Factors

Increased Cost and Operating Loss

Rising costs and operating losses can strain profitability, potentially impacting Meituan's ability to invest in growth and innovation.

Intense Competition

Intense competition may pressure margins and require increased spending on customer acquisition, affecting long-term profitability.

Profitability Decline

Declining profitability in core segments can hinder financial flexibility and limit strategic investments, challenging future growth.

Meituan Business Overview & Revenue Model

Company Description

Meituan 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 Money

Meituan generates revenue through multiple key streams, primarily from its food delivery services, which account for a significant portion of its earnings. The company charges restaurants a commission on each order placed through its platform. Additionally, Meituan earns revenue from its travel and hotel booking services by taking a commission on bookings made through its site. Another revenue stream is its advertising business, where local businesses pay for promotional placements on the platform. Meituan's partnerships with various restaurants, hotels, and service providers enhance its service offerings and contribute to its earnings by driving user engagement and increasing transaction volumes.

Meituan Financial Statement Overview

Summary

Meituan demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet reflects a solid capital structure with manageable debt levels. However, the decline in free cash flow growth and slight pressure on operational efficiency warrant attention.

Income Statement

Meituan has shown consistent revenue growth with a TTM growth rate of 2.73%. The company maintains a strong gross profit margin of 36.90% and a net profit margin of 8.19%, indicating efficient cost management and profitability. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting potential pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.28, reflecting a solid capital structure with manageable leverage. Return on equity stands at 16.83%, showcasing effective utilization of shareholder funds. The equity ratio is healthy, indicating strong asset backing. However, the decrease in total debt suggests a cautious approach to leveraging growth opportunities.

Cash Flow

Meituan's free cash flow to net income ratio is robust at 1.12, indicating strong cash generation relative to profits. However, the free cash flow growth rate has declined by 13.89%, signaling potential challenges in sustaining cash flow growth. The operating cash flow to net income ratio is moderate, suggesting room for improvement in cash flow efficiency.

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

• Technical Analysis Sentiment: Positive
• Last Price: 103.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3690, the sentiment is Positive. The current price of 103.3 is above the 20-day moving average (MA) of 99.97, above the 50-day MA of 101.98, and below the 200-day MA of 132.16, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 54.19 is Neutral, neither overbought nor oversold. The STOCH value of 58.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3690.

Meituan Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3690	74 Outperform	$610.52B	19.20	17.12%	―	17.67%	33.74%
9988	74 Outperform	HK$3.04T	18.46	15.15%	1.19%	5.08%	127.82%
9618	70 Outperform	HK$394.77B	8.95	17.17%	3.09%	14.18%	32.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9991	50 Neutral	HK$1.48B	-7.31	-4.71%	―	7.51%	30.41%

Meituan Corporate Events

Meituan Issues Senior Notes to Bolster Financial Flexibility

Meituan has announced the issuance of senior notes totaling approximately US$1,993.7 million and CNY7,080 million. The proceeds from these notes will primarily be used for refinancing existing offshore indebtedness and general corporate purposes. This strategic financial move is aimed at strengthening Meituan’s financial position and operational flexibility. The notes are being issued to professional investors, with the USD notes offered to qualified institutional buyers in the United States under specific regulatory exemptions, while the CNY notes are offered outside the United States.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$154.40 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan Grants Over 11 Million RSUs to Align Employee Interests

Meituan has announced the grant of 11,828,615 Restricted Share Units (RSUs) under its Post-IPO Share Award Scheme, aimed at aligning the interests of its employees and service providers with the long-term growth of the company. This initiative, which does not require shareholder approval, is designed to retain talent and encourage contributions to the company’s profitability, with a vesting period ranging from 23 to 48 months for employees and approximately 47 months for service providers.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$154.40 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan Proposes International Offering of Senior Notes

Meituan has announced a proposed international offering of USD and CNY denominated senior notes, targeting professional investors. The proceeds from this issuance are intended for refinancing existing offshore debt and general corporate purposes. The offering’s success will depend on market conditions and investor interest, with pricing and terms yet to be finalized. The notes will not be registered under the U.S. Securities Act and will be sold outside the U.S. to non-U.S. persons. The company plans to list the notes on the Hong Kong Stock Exchange, although no binding agreements have been made yet, and the issuance may not materialize.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$154.40 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.

Meituan’s Earnings Call: Growth Amid Challenges

Meituan’s recent earnings call painted a mixed picture of the company’s current standing and future prospects. On one hand, the company demonstrated robust user growth and maintained its market leadership in the on-demand delivery sector. On the other hand, Meituan is grappling with increased costs and fierce competition, which have led to a notable decline in profitability and strategic scaling back in certain segments.

Meituan Dianping Reports Revenue Growth Amid Profit Challenges

Meituan Dianping is a leading Chinese technology company specializing in on-demand services and e-commerce, primarily operating in the local commerce sector with a focus on food delivery and new retail initiatives.

Meituan Reports Revenue Growth Amidst Declining Profits in H1 2025

Meituan announced its unaudited financial results for the three and six months ended June 30, 2025, revealing a significant decline in profitability despite an increase in revenues. For the three-month period, revenues increased by 11.7% year-over-year to RMB 91.84 billion, but operating profit and profit for the period saw drastic declines of 98.0% and 96.8%, respectively. Similarly, for the six-month period, revenues rose by 14.7% to RMB 178.40 billion, while operating profit and profit for the period decreased by 34.5% and 37.7%, respectively. The results indicate challenges in maintaining profitability amidst revenue growth, impacting the company’s financial health and potentially affecting stakeholder confidence.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$188.00 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 Interim Results

Meituan has announced that its board of directors will convene on August 27, 2025, to consider and approve the interim results for the first half of the year ending June 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and potentially influence its market positioning.

The most recent analyst rating on (HK:3690) stock is a Buy with a HK$182.00 price target. To see the full list of analyst forecasts on Meituan stock, see the HK:3690 Stock Forecast page.