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Market Cap

HK$1.7t

Last Updated

2021/04/19 10:16 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 3690 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 3690's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

3690

-6.4%

HK Online Retail

0.7%

HK Market


1 Year Return

186.6%

3690

190.9%

HK Online Retail

28.1%

HK Market

Return vs Industry: 3690 underperformed the Hong Kong Online Retail industry which returned 190.9% over the past year.

Return vs Market: 3690 exceeded the Hong Kong Market which returned 28.1% over the past year.


Shareholder returns

3690IndustryMarket
7 Day-3.0%-6.4%0.7%
30 Day-13.2%-11.6%-0.2%
90 Day-15.2%-9.6%0.2%
1 Year186.6%186.6%190.9%190.9%33.4%28.1%
3 Yearn/a165.3%165.3%8.1%-3.8%
5 Yearn/a93.8%93.1%56.5%28.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3690 (HK$289.2) is trading below our estimate of fair value (HK$443.33)

Significantly Below Fair Value: 3690 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3690 is poor value based on its PE Ratio (301.3x) compared to the HK Online Retail industry average (54.2x).

PE vs Market: 3690 is poor value based on its PE Ratio (301.3x) compared to the Hong Kong market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: 3690 is poor value based on its PEG Ratio (10.8x)


Price to Book Ratio

PB vs Industry: 3690 is overvalued based on its PB Ratio (14.5x) compared to the HK Online Retail industry average (2.1x).


Future Growth

How is Meituan forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?

28.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3690's forecast earnings growth (28% per year) is above the savings rate (1.5%).

Earnings vs Market: 3690's earnings (28% per year) are forecast to grow faster than the Hong Kong market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 3690's revenue (24.1% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).

High Growth Revenue: 3690's revenue (24.1% 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 high in 3 years time (20.8%)


Past Performance

How has Meituan performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3690 has a large one-off gain of CN¥6.2B impacting its December 31 2020 financial results.

Growing Profit Margin: 3690's current net profit margins (4.1%) are higher than last year (2.3%).


Past Earnings Growth Analysis

Earnings Trend: 3690 has become profitable over the past 5 years, growing earnings by 15.6% per year.

Accelerating Growth: 3690's earnings growth over the past year (110.5%) exceeds its 5-year average (15.6% per year).

Earnings vs Industry: 3690 earnings growth over the past year (110.5%) exceeded the Online Retail industry 30.6%.


Return on Equity

High ROE: 3690's Return on Equity (4.8%) is considered low.


Financial Health

How is Meituan's financial position?


Financial Position Analysis

Short Term Liabilities: 3690's short term assets (CN¥88.3B) exceed its short term liabilities (CN¥51.1B).

Long Term Liabilities: 3690's short term assets (CN¥88.3B) exceed its long term liabilities (CN¥17.8B).


Debt to Equity History and Analysis

Debt Level: 3690's debt to equity ratio (21.8%) is considered satisfactory.

Reducing Debt: 3690 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 3690's debt is well covered by operating cash flow (39.8%).

Interest Coverage: Insufficient data to determine if 3690's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average board tenure


CEO

Xing Wang (41 yo)

no data

Tenure

CN¥5,461,000

Compensation

Mr. Xing Wang has been a Director of Li Auto Inc. since July 2019. Mr. Wang is a co-founder, chief executive officer and chairman of Meituan, the leading e-commerce platform for services in China listed on...


CEO Compensation Analysis

Compensation vs Market: Xing's total compensation ($USD837.49K) is about average for companies of similar size in the Hong Kong market ($USD912.91K).

Compensation vs Earnings: Xing's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: 3690's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Meituan
  • Ticker: 3690
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: HK$1.709t
  • Shares outstanding: 5.89b
  • Website: https://about.meituan.com

Number of Employees


Location

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

Listings


Biography

Meituan, 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 New Initiat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 10:16
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.