SEHK:3690

Stock Analysis Report

Executive Summary

Meituan Dianping, an investment holding company, provides an e-commerce platform that uses technology to connect consumers and merchants.

Rewards

Earnings are forecast to grow 59.9% per year

Risk Analysis

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months



Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Meituan Dianping's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3690's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

3690

-1.3%

HK Online Retail

0.5%

HK Market


1 Year Return

98.5%

3690

81.3%

HK Online Retail

-0.2%

HK Market

Return vs Industry: 3690 exceeded the Hong Kong Online Retail industry which returned 81.3% over the past year.

Return vs Market: 3690 exceeded the Hong Kong Market which returned -0.2% over the past year.


Shareholder returns

3690IndustryMarket
7 Day-1.3%-1.3%0.5%
30 Day9.2%8.3%-3.8%
90 Day46.9%40.4%-1.3%
1 Year98.5%98.5%81.3%81.3%3.4%-0.2%
3 Yearn/a-76.7%-76.7%18.8%6.7%
5 Yearn/a-57.1%-57.7%19.5%-0.5%

Price Volatility Vs. Market

How volatile is Meituan Dianping's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Meituan Dianping undervalued compared to its fair value and its price relative to the market?

6.17x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 3690 (HK$103.3) is trading above our estimate of fair value (HK$42.1)

Significantly Below Fair Value: 3690 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3690 is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: 3690 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3690's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3690 is overvalued based on its PB Ratio (6.2x) compared to the HK Online Retail industry average (1.6x).


Next Steps

Future Growth

How is Meituan Dianping forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

59.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3690 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 3690 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 3690's is expected to become profitable in the next 3 years.

Revenue vs Market: 3690's revenue (22.2% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 3690's revenue (22.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3690's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has Meituan Dianping performed over the past 5 years?

-38.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3690 is currently unprofitable.

Growing Profit Margin: 3690 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 3690 is unprofitable, and losses have increased over the past 5 years at a rate of -38.4% per year.

Accelerating Growth: Unable to compare 3690's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3690 is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-1.5%).


Return on Equity

High ROE: 3690 has a negative Return on Equity (-2.92%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Meituan Dianping's financial position?


Financial Position Analysis

Short Term Liabilities: 3690's short term assets (CN¥79.3B) exceed its short term liabilities (CN¥33.5B).

Long Term Liabilities: 3690's short term assets (CN¥79.3B) exceed its long term liabilities (CN¥4.0B).


Debt to Equity History and Analysis

Debt Level: 3690's debt to equity ratio (4.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 3690's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 3690 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3690's debt is covered by short term assets (assets are 19.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 3690 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 3690 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Meituan Dianping's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3690's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3690's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3690's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3690's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3690's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Meituan Dianping's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average board tenure


CEO

Xing Wang (40yo)

0yrs

Tenure

CN¥4,693,000

Compensation

Mr. Xing Wang is the Chief Executive Officer and Co-founder at China Internet Plus Group. Prior to this, Mr. Wang was employed at Xiaonei.com in the position of Chief Executive Officer. He serves as Co-Fou ...


CEO Compensation Analysis

Compensation vs Market: Xing's total compensation ($USD665.66K) is about average for companies of similar size in the Hong Kong market ($USD805.05K).

Compensation vs Earnings: Xing's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

2.2yrs

Average Tenure

47.5yo

Average Age

Experienced Board: 3690's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥84,097,88219 Jul 19
Sequoia Capital China
EntityCompany
Shares1,305,205
Max PriceCN¥64.43

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 210.9%.


Management Team

  • Sean Chen (37yo)

    CFO & Senior VP

    • Tenure: 0yrs
  • Xing Wang (40yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CN¥4.69m
  • Chuan Zhang (43yo)

    Senior Vice President

    • Tenure: 0yrs
  • Zhang Tao (46yo)

    Co-founder

    • Tenure: 0yrs
    • Compensation: CN¥1.92m
  • Rongjun Mu (39yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CN¥39.49m
  • Huiwen Wang (40yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CN¥143.36m
  • Yixiang Wang

    Joint Company Secretary

    • Tenure: 0yrs
  • Yee Lau

    Joint Company Secretary

    • Tenure: 0yrs
  • Liang Chen (38yo)

    Senior Vice President

    • Tenure: 0yrs

Board Members

  • Jeff Leng (49yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥742.00k
  • Martin Lau (46yo)

    Non-Executive Director

    • Tenure: 2.2yrs
  • Harry Shum (52yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥742.00k
  • Xing Wang (40yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CN¥4.69m
  • Gordon Robert-Halyburton Orr (57yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥742.00k
  • Rongjun Mu (39yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CN¥39.49m
  • Huiwen Wang (40yo)

    Co-Founder

    • Tenure: 0yrs
    • Compensation: CN¥143.36m
  • Nanpeng Neil (51yo)

    Non-Executive Director

    • Tenure: 4.2yrs

Company Information

Meituan Dianping's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Meituan Dianping
  • Ticker: 3690
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: HK$601.546b
  • Shares outstanding: 5.81b
  • Website: https://www.meituan.com

Number of Employees


Location

  • Meituan Dianping
  • Hengjiweiye Building
  • Block B&C
  • Beijing
  • 100102
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3690SEHK (The Stock Exchange of Hong Kong Ltd.)YesClass B SharesHKHKDSep 2018
MPNG.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDSep 2018
9MDDB (Deutsche Boerse AG)YesClass B SharesDEEURSep 2018
3690SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesClass B SharesHKHKDSep 2018
3690SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesClass B SharesHKHKDSep 2018
MPNG.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDNov 2018

Biography

Meituan Dianping, an investment holding company, provides an e-commerce platform that uses technology to connect consumers and merchants. It operates through Food Delivery; In-store, Hotel & Travel; and Ne ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:58
End of Day Share Price2019/12/09 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.