Meituan, the Chinese e-commerce platform, has achieved remarkable success in the second quarter of 2024, showcasing a 21% increase in total revenue year-over-year, reaching RMB 28.3 billion. The company’s adjusted net profit surged by 77.6% to RMB 13.6 billion, marking a new profitability milestone.
Key Takeaways:
- Meituan’s total revenue surged by 21% year-over-year to RMB 28.3 billion.
- Adjusted net profit rose by 77.6% to RMB 13.6 billion.
- Annual transaction users and active merchants reached record highs of 730 million.
- The company introduced Meituan Group Buy and invested in lower-tier markets.
- On-demand delivery and in-store, hotel, and travel businesses witnessed substantial growth.
- Meituan repurchased over USD 2 billion worth of shares and plans to cancel them to reduce share count.
Meituan looks towards the future with a retail plus technology strategy to bolster industry growth and strengthen collaborations within the core local commerce. The focus will remain on enhancing user experiences and merchant collaborations, positioning Meituan to leverage the vast potential of China’s local commerce industry. Additionally, the commitment to operational efficiency and shareholder returns is evident through substantial share repurchase and cancellation strategies.
Despite challenges such as a decline in average order value for the on-demand delivery business, Meituan continues to explore new opportunities and expand its market leadership. The company remains dedicated to optimizing operational efficiency, investing in new ventures like Meituan Select and Xiaoxiang Supermarket, and evaluating potential overseas expansion opportunities, ensuring sustainable growth and profitability in the e-commerce and local services sectors.
InvestingPro Insights:
- Market Cap (Adjusted): USD 86.0B, underlining significant market valuation.
- P/E Ratio (Adjusted): 44.9 for the last twelve months, showcasing positive market expectations.
- Revenue Growth: 22.6% in the last twelve months, indicating robust top-line performance.
As Meituan continues to innovate, explore new markets, and enhance business synergies, the company positions itself as a prominent player in the Hotels, Restaurants & Leisure industry. With a focus on sustained growth, operational efficiency, and shareholder returns, Meituan remains committed to driving industry progress, delivering value to consumers, merchants, and investors alike.
