- Meituan‘s third-quarter revenue was 93.58 billion yuan, surpassing the estimated 91.99 billion yuan.
- Core local commerce revenue reached 69.37 billion yuan, exceeding the forecast of 68.33 billion yuan.
- New initiative revenue totaled 24.20 billion yuan, higher than the estimated 23.3 billion yuan.
- Net income stood at 12.86 billion yuan, significantly beating the expected 9.41 billion yuan.
- Adjusted net income was reported at 12.83 billion yuan, above the estimated 11.66 billion yuan.
- Adjusted EBITDA was 14.53 billion yuan, compared to the expectation of 13.32 billion yuan.
- Operating profit was recorded at 13.69 billion yuan, exceeding the estimate of 9.7 billion yuan.
- Gross profit was 36.75 billion yuan, slightly above the anticipated 35.51 billion yuan.
- Selling and marketing expenses were 17.95 billion yuan, higher than the expected 17.02 billion yuan.
- Research and development expenses were 5.29 billion yuan, below the estimated 6.4 billion yuan.
- The company’s stock recommendations include 58 buys, 2 holds, and 2 sells.
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Meituan on Smartkarma
Analysts on Smartkarma are closely monitoring Meituan, a Chinese tech company, with diverse views on its future prospects. Ming Lu remains optimistic, anticipating a potential 49% upside after the stock’s impressive 84% rise. Foreseeing significant margin improvements and healthy business growth in the upcoming quarter, Lu’s report suggests ongoing positive momentum for Meituan.
On the other hand, Brian Freitas takes a more cautious stance, highlighting the impact of passive selling in December due to Meituan‘s overperformance. This results in a need for significant stock offloading by passive trackers, a situation influenced by the stock’s weight exceeding certain index caps. Meanwhile, Eric Chen emphasizes Meituan‘s long-term profitability, foreseeing accelerated earnings growth and projecting a substantial adjusted net profit by 2026, indicating a positive outlook for the company’s financial health.
A look at Meituan Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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‘s long-term outlook looks promising as indicated by its Smartkarma Smart Scores. With a strong score of 5 in Growth, Resilience, and Momentum, the company seems well-positioned for future success. Meituan‘s focus on continual growth, ability to withstand challenges, and positive market momentum bode well for its sustained performance in the long run.
Although Meituan scored lower in Value and Dividend at 2 and 1 respectively, its high scores in Growth, Resilience, and Momentum paint a positive picture for the company’s overall outlook. As an online platform for local consumer products and services in China, Meituan‘s strategic positioning and robust operational performance are key factors that could drive its future success.
Summary: Meituan operates as a web-based shopping platform offering a variety of local consumer products and retail services, including deals on entertainment, dining, delivery, and more. The company’s services are available throughout China.
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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