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Meituan (HK:3690)
:3690
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Meituan (3690) AI Stock Analysis

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HK:3690

Meituan

(OTC:3690)

Rating:67Neutral
Price Target:
HK$110.00
▲(7.11% Upside)
Meituan's overall stock score is driven by strong financial performance and strategic market positioning. However, bearish technical indicators and competitive pressures weigh on the score. The company's valuation is reasonable, but profitability challenges and strategic adjustments are concerns.
Positive Factors
Financial Performance
Meituan's reported revenue was RMB86.6bn, up 18% YoY, exceeding forecasts and consensus estimates.
Market Position
Analyst maintains a BUY recommendation on Meituan, believing that the leading position in the food delivery segment remains intact in the long term, with strong earnings potential from Keeta.
New Initiatives and Expansion
The new initiatives and others (NIO) segment showed accelerated revenue growth of 23% year over year, with improvements in unit economics in regions like Saudi Arabia and Hong Kong.
Negative Factors
Competition
Intensifying competition in the food delivery segment is expected to put pressure on revenue and earnings.
Earnings and Margins
Meituan’s 2Q25 earnings missed expectations, with a non-IFRS net profit slumping 89% year over year and net margin shrinking to 2%.
Strategic Investments
Meituan's adjusted net profit was down 89% year-over-year, largely due to strategic investments in maintaining market share in the food delivery business.

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

Meituan Business Overview & Revenue Model

Company DescriptionMeituan (3690) is a leading Chinese technology-driven retail platform, focusing primarily on the delivery and consumption of local services. The company operates in various sectors, including food delivery, in-store dining, hotel booking, travel services, ride-hailing, and other entertainment services. Meituan leverages its robust platform to connect consumers with local businesses, aiming to enhance the efficiency and convenience of purchasing daily services.
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 substantial revenue growth, improved profitability margins, and effective cash flow management. The company's leverage is conservative, although attention to rising liabilities is needed.
Income Statement
85
Very Positive
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.
Balance Sheet
78
Positive
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.
Cash Flow
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue350.87B337.59B276.74B219.95B179.13B114.79B
Gross Profit136.50B129.78B97.19B61.75B42.47B34.05B
EBITDA45.89B41.51B23.44B4.56B-13.56B4.67B
Net Income40.50B35.81B13.86B-6.69B-23.54B4.71B
Balance Sheet
Total Assets333.93B324.35B293.03B244.48B240.65B166.57B
Cash, Cash Equivalents and Short-Term Investments180.38B168.24B145.16B112.03B116.80B61.09B
Total Debt62.06B61.51B60.62B58.09B58.92B24.06B
Total Liabilities149.80B151.75B141.07B115.78B115.10B68.94B
Stockholders Equity184.19B172.66B152.01B128.76B125.61B97.69B
Cash Flow
Free Cash Flow61.30B46.15B33.64B5.68B-13.02B-7.35B
Operating Cash Flow61.30B57.15B40.52B11.41B-4.01B8.48B
Investing Cash Flow21.56B10.21B-24.66B-14.71B-58.49B-21.23B
Financing Cash Flow-19.05B-30.41B-2.78B-9.99B78.60B17.42B

Meituan Technical Analysis

Technical Analysis Sentiment
Negative
Last Price102.70
Price Trends
50DMA
123.32
Negative
100DMA
130.36
Negative
200DMA
146.42
Negative
Market Momentum
MACD
-4.25
Positive
RSI
26.72
Positive
STOCH
5.88
Positive
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 102.7 is below the 20-day moving average (MA) of 119.02, below the 50-day MA of 123.32, and below the 200-day MA of 146.42, indicating a bearish trend. The MACD of -4.25 indicates Positive momentum. The RSI at 26.72 is Positive, neither overbought nor oversold. The STOCH value of 5.88 is Positive, 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
78
Outperform
HK$2.21T13.4315.15%1.70%5.08%127.82%
76
Outperform
HK$376.86B8.5417.17%3.33%14.18%32.25%
67
Neutral
$627.60B19.5017.12%17.67%33.64%
61
Neutral
$17.60B14.14-5.40%3.04%1.40%-15.06%
52
Neutral
HK$1.51B-4.71%7.51%30.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3690
Meituan
102.70
-13.60
-11.69%
HK:9618
JD.com, Inc. Class A
117.80
15.36
14.99%
HK:9988
Alibaba Group Holding Ltd.
115.70
37.51
47.97%
HK:9991
Baozun, Inc. Class A
8.35
2.35
39.17%

Meituan Corporate Events

Meituan Aligns Interests with New RSU Grant
Jul 25, 2025

Meituan has announced the grant of 6,179,071 Restricted Share Units (RSUs) under its Post-IPO Share Award Scheme, with the majority allocated to employee participants and a smaller portion to service providers. This initiative aims to align the interests of the grantees with the company’s long-term growth and profitability, enhancing retention and motivation among key contributors.

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.

Meituan Successfully Concludes AGM, Approves Key Resolutions
Jun 9, 2025

Meituan announced the successful conclusion of its Annual General Meeting held on June 9, 2025, where all proposed resolutions were passed. Key resolutions included the adoption of the 2024 financial statements, re-election of independent directors, authorization for directors to fix their remuneration, and granting of mandates to issue and repurchase shares. The reappointment of PricewaterhouseCoopers as the company’s auditor was also confirmed. These resolutions underscore Meituan’s commitment to maintaining strong governance and operational flexibility, potentially enhancing its market position and shareholder 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 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.

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.Date of analysis: Aug 29, 2025