On January 17th, Meituan‘s Hong Kong stock cost fell by 6.97%, closing at HKD 68.75, reaching a brand-new low in the previous 4 years. This rate dropped listed below the IPO rate of HKD 69 when Meituan went public in 2018.
The present market price of this business, which concentrates on regional way of life service, is HKD 429.3 billion, a reduction of over 80% from its peak worth of HKD 2.6 trillion. Given that getting in 2024, Meituan‘s stock rate has actually built up a decrease of 16.06%.
The constant decrease in its stock cost is associated with the general sluggishness of the Hong Kong stock exchange.
On that day, the Hang Seng Index (HSI) fell more than 4%, and the Hang Seng Tech Index stopped by 5.58%. Apart from Meituannumerous large-cap innovation stocks noted in Hong Kong remained in a down pattern. Amongst them, Kuaishou stopped by 6.2%, Trip.com fell by 1.85%, China Literature Restricted decreased by over 7.2%, Tencent reduced by 2.76%, Alibaba Group Holding Limited come by 3.31%, Xiaomi fell by 4.92%, JD.com decreased by 4.53%, and NetEase stopped by 1.66%.
Because January 10th, Meituan has actually been redeeming stocks for 5 successive trading days to improve the stock cost. It has actually bought an overall of 26.905 million shares, with an expense of around HKD 2 billion. This is likewise the very first time that the business has actually redeemed its own stocks.
And 2 days before carrying out the buyback strategy, Zhang Chuan, President of Meituan‘s in-store service group, talked about the competitive environment and competitors method that Meituan is presently dealing with in a “New Year’s Message.” The material of the letter is reasonably unusual within Meituan and has actually mainly been concentrated on motivation in the past.
SEE ALSO: NetEase Surpasses MeituanBecoming the Fourth Largest Internet Company in China by Market Value
According to the current monetary report of Meituanit can be seen that its profits and net revenue were both in a growing pattern in the 3rd quarter of in 2015. Amongst them, the profits increased by over 20% compared to the previous year, and the net earnings rose by as much as 195.37% compared to the very same duration in 2022.
In Meituan‘s different organizations, the core food shipment company has actually attained favorable revenue development, however the typical order worth has actually reduced. The development rate of operating revenue has actually decreased to 8.31%, considerably lower than the 34.83% in the 2nd quarter.
Concerning the stock rate and assessment, Meituan CEO Wang Xing when mentioned throughout the monetary teleconference that the stock cost in the secondary market just shows the assessment of Meituan‘s food shipment organization and does not line up with the business’s intrinsic worth. Meituan has actually started a series of internal acquisitions as discussed above.
Whether Meituan‘s stock cost is underestimated still needs more information to support, however financiers plainly intend to hear more development possible stories from this business.
Register today for 5 totally free short articles regular monthly!