Meituan 1Q Earnings Beat Estimates: 58.62 Billion Yuan in Revenue, 3.36 Billion in Net Income

• Meituan reported 1Q revenue of 58.62 billion yuan, beating estimates of 57.48 billion yuan.
• Core local commerce revenue was 42.89 billion yuan, compared to estimates of 41.63 billion yuan.
• Revenue from new initiatives was 15.73 billion yuan, slightly below estimates of 16.08 billion yuan.
• Operating profit was 3.59 billion yuan, beating estimates of 232.6 million yuan.
• Adjusted Ebitda was 6.26 billion yuan, significantly higher than estimates of 4.02 billion yuan.
• Net income was 3.36 billion yuan, compared to estimates of a loss of 210.4 million yuan.
• Analysts have a consensus rating of 59 buys, 2 holds, and 1 sell.

Meituan on Smartkarma

Independent analysts on Smartkarma have been closely following Meituan, a Chinese service provider, as the company continues to expand its operations in Hong Kong SAR and compete with Douyin. According to research from Shawn Yang, Meituan‘s expansion strategies include lower ASP, subsidy campaign, and launching “On-time Guarantee”. Ming Lu reported on Meituan‘s delivery workers’ strike in Shanwei City, noting that the hard job market likely pushed Meituan to the forefront of industrial relations. On the other hand, Shawn Yang reported that Meituan‘s strategies to compete with Douyin, such as a low-price strategy and the addition of more video/live streaming content, have been showing promising results. Lastly, Sumeet Singh discussed the potential of Meituan‘s placement, with its restructuring news potentially leading to increased Hong Kong filings.

Overall, the analyst coverage of Meituan on Smartkarma has been varied, with some reports highlighting the company’s successes and others discussing potential challenges. While Meituan has been able to implement strategies to compete with Douyin, the effectiveness of these strategies and the potential of its placement remain unclear. Nevertheless, independent analysts on Smartkarma continue to provide in-depth coverage of the company.

A look at Meituan‘s Smart Scores

Meituan has a long-term outlook that shows promise. Its Smartkarma Smart Scores have it rated at a 2 for value, 1 for dividend, 2 for growth, 5 for resilience and 2 for momentum. This indicates that while Meituan may not be a great investment in terms of value, it is an attractive option in terms of dividend and resilience. Meituan operates as a web based shopping platform for locally found consumer products and retail services. The Company offers deals of the day by selling vouchers on local services and entertainment, dining, delivery, and other services. Meituan provides its services throughout China.

The company’s resilience score of 5 is particularly promising, indicating that Meituan is well-positioned to weather any economic downturns. This is especially important for a company that operates in a highly competitive and rapidly changing environment. Despite its weaker scores for value and dividend, the company’s overall outlook looks positive and it is likely to remain a strong contender in the Chinese market.

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.
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