- Meituan‘s second-quarter revenue was 91.84 billion yuan, which fell short of the 93.69 billion yuan estimate.
- Core local commerce revenue amounted to 65.35 billion yuan, missing the 67.55 billion yuan forecast.
- New initiative revenue was 26.49 billion yuan, slightly above the estimate of 25.96 billion yuan.
- Delivery services revenue reached 23.66 billion yuan, below the expected 26.18 billion yuan.
- Commission revenue totaled 26.47 billion yuan, surpassing the projected 25.91 billion yuan.
- Online marketing services revenue was 13.65 billion yuan, under the anticipated 14.32 billion yuan.
- Other revenue was 28.06 billion yuan, higher than the estimate of 27.14 billion yuan.
- Adjusted net income stood at 1.49 billion yuan, significantly lower than the estimate of 9.85 billion yuan.
- Adjusted EBITDA amounted to 2.78 billion yuan, well under the 12.22 billion yuan forecast.
- Operating profit was 226.4 million yuan, far below the estimated 8 billion yuan.
- For the first half, total revenue was 178.40 billion yuan, with a net income of 10.42 billion yuan.
- In terms of analyst ratings, there are 52 buy recommendations, 7 holds, and 2 sell recommendations.
Meituan on Smartkarma
Analyst coverage of Meituan on Smartkarma has been positive recently. Sumeet Singh from Aequitas Research highlighted Meituan as Prosus NV began to reduce its stake in the company amidst a mega raising by WuXi AppTec. Travis Lundy‘s report on HK Connect SOUTHBOUND Flows showed Meituan as a top buy for 12 consecutive weeks. John Ley‘s analysis emphasized a surge in call volumes for Meituan, presenting strong trade setups. Additionally, Singh’s earlier report discussed potential placements for Meituan, indicating ongoing interest in the company. David Blennerhassett‘s insights noted that Prosus NV might divest its Meituan stake if the company continues its Brazil market launch, hinting at potential value realization.
A look at Meituan Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Meituan, an online shopping platform in China, shows promising long-term potential based on its Smartkarma Smart Scores. With a strong focus on growth and resilience, Meituan has garnered a high score in both areas. Their commitment to expanding their market presence and ability to withstand economic fluctuations positions them well for sustained success in the future.
While certain aspects like value and dividend may not rank as high, Meituan‘s impressive scores in growth and resilience overshadow these factors. The company’s ability to adapt to changing market conditions and capitalize on emerging opportunities bodes well for its long-term outlook. Investors may find Meituan to be an attractive prospect for growth and stability in the evolving consumer services industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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