Source: Bloomberg
Author: jeanny yu
The decline of up to 30%of Meituan has confirmed that the company's dilemma is deepening, and this Chinese takeaway distribution giant is facing fierce competition from byte beating.
The byte beating plan is a cup from the hands of the Meituan through the e -commerce service built by Douyin.In addition, the company is also entering the food distribution market that is vital to the Meituan.
Meituan's performance in 30 component stocks in the Hang Seng Technology Index this year ranks fifth.As of the Hong Kong closing of Monday, Meituan has fallen by more than 6 times the technology index this year, and the stock price has fallen by about three -quarters from the highest closing price set in February 2021.
Vey-Sern Ling Ling, the managing director of
Union Bancaire Privee, said: "Meituan has a much lower guidance profit margin against Douyin. Unless this guidelines are changed or the company's profit margin has increased significantly, investors will not have no investors.The reason changes the view. "
The battlefield of Meituan and byte beating is the so -called "home -to -store business". This model is to collect fees to issue coupons, vouchers, tickets, tickets and accommodation.
Shojia Long, an analyst at Nomura International in Hong Kong, said that, in view of the next few months, it is a traditional peak season for hotels and tourism, which may be particularly critical to the competition between these two companies.
A difficult year
This year is a challenging year for Chinese e -commerce companies. The highly anticipated retaliatory consumption has not been staged under the background of economic weakness.Disappointment forces some companies to reduce prices sharply in fierce competition.Unlike online game companies, Meituan's takeaway distribution business has a meager profit and has low barriers, so it is particularly affected.
In order to resist the challenge of byte beating, Meituan announced earlier this year to plan to recruit up to 10,000 employees.This decision was opposed by investors who were worried about profit margins.
Thanks to the growth of meal delivery and tourism demand, Meituan's revenue in the first quarter exceeded the expected increase of about 27%.The company said that after adjusting the subsidy strategy, its arrival business accelerated in the first quarter.
The prospects of Meituan are not dim.Shi Jialong said that the company may be able to maintain a leading position due to the improvement of the operating environment of the "home business" and huge subsidies after the epidemic.
According to the data summarized by Bloomberg, there are 59 buying rated by Meituan and 2 rating rating. Only one selling rating. Analysts expect the stock to rise by 63%in the next 12 months.
Loss of community group purchase platforms
Nevertheless, many questions of analysts have not been answered.Meituan seems to focus on the community group purchase platform that is always losing money.After the acquisition of artificial intelligence innovation companies "outside of light years" last month, how the company also embedded artificial intelligence technology into its current operations.
Morning Star Company's analyst Kai Wang, an analyst in Hong Kong, said that although the newly enrolled Douyin copying Meituan platform may take some time, the growth of the latter's takeaway distribution business has "slowed down significantly."Kai Wang also said that Meituan has been "burning money" for new activities.
"Meituan's business profit margin decreases faster than expected," Wang said. "Douyin needs to copy like Meituan's platform for a long time, but it is not impossible to do it."
