The one with the king of losses $MEITUAN-W (03690.HK)$It used to be a “darling” who was very optimistic about the capital market. Because the local lifestyle market surrounding clothing, food, lodging, and travel is large enough, Meituan's strategy of exchanging losses for industry leaders in the past was widely accepted by the market.
In particular, in the three years of the epidemic, people's travel radius was “physically” blocked, takeaway/instant retail value was highlighted, and Meituan's market capitalization once reached a peak of HK$3.1 trillion (after Tencent and Ali).
Currently, the market value of Meituan is only HK$868.2 billion, a reduction of nearly three-fourths.
On March 24, Meituan announced results for the fourth quarter and full year of 2022. Even after the handover, results such as annual revenue of 220 billion yuan (RMB, same below) and adjusted net profit of 2.8 billion yuan did not boost stock prices. With revenue of 220 billion dollars and already making money, why is Meituan not in the same situation as when it was a huge loss at the beginning? The secret is hidden in the following two pieces of data.
1.The annual instant delivery order volume reached 17.7 billion orders, and the core local commercial operating profit reached 29.5 billion yuan;
Meituan's core local commercial division achieved revenue growth of 17.6%. Operating profit increased 56.8% year over year to RMB 29.5 billion, and operating profit margin increased to 18.4% from 13.8% in 2021.
According to Meituan's division, the core local commercial division includes the original catering takeout and delivery, hotel and travel divisions, as well as Meituan flash sales, homestays, and transportation ticketing.
Also speaking of bags...