What Meituan's (HKG:3690) 26% Share Price Gain Is Not Telling You

Simply Wall St.03-11

Meituan (HKG:3690) shares have had a really impressive month, gaining 26% after a shaky period beforehand. Unfortunately, the gains of the last month did little to right the losses of the last year...

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Unfortunately, the gains of the last month did little to right the losses of the last year...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/consumer-services/hkg-3690/meituan-shares/news/what-meituans-hkg3690-26-share-price-gain-is-not-telling-you\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>What Meituan's (HKG:3690) 26% Share Price Gain Is Not Telling You</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhat Meituan's (HKG:3690) 26% Share Price Gain Is Not Telling You\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-11 08:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/consumer-services/hkg-3690/meituan-shares/news/what-meituans-hkg3690-26-share-price-gain-is-not-telling-you><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Meituan (HKG:3690) shares have had a really impressive month, gaining 26% after a shaky period beforehand.    Unfortunately, the gains of the last month did little to right the losses of the last year...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/consumer-services/hkg-3690/meituan-shares/news/what-meituans-hkg3690-26-share-price-gain-is-not-telling-you\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1583","symbol_name":"高瓴概念","start_time":0,"source_url":"https://simplywall.st/stocks/hk/consumer-services/hkg-3690/meituan-shares/news/what-meituans-hkg3690-26-share-price-gain-is-not-telling-you","article_id":"2418710873","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4422000-choice1-main-header/1585186589176"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2418710873","pubTimestamp":1710115319,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Meituan ( HKG:3690 ) shares have had a really impressive month, gaining 26% after a shaky period beforehand...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1583":"高瓴概念","LU0307460666.USD":"EASTSPRING INVESTMENTS CHINA EQUITY \"A\" ACC","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","LU0588546209.SGD":"Eastspring Investments - China Equity Fund AS SGD","LU0348805143.USD":"ALLIANZ ENHANCED ALL CHINA EQUITY \"A\" (USD) INC","LU0370786039.SGD":"Fidelity Greater China A-SGD","LU0048597586.USD":"富达亚洲焦点A","LU0456846285.SGD":"JPMorgan Funds - Greater China A (acc) SGD","LU0594300419.USD":"富达中国消费基金A","LU0327786744.USD":"Janus Henderson Horizon China Opportunities A2 USD","LU0326950275.SGD":"Schroder ISF China Opportunities A Acc SGD-H","LU0315178854.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY INCOME \"A\" ACC","LU0251144936.SGD":"Fidelity Sustainable Asia Equity A-SGD","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU0029875118.USD":"TEMPLETON ASIAN GROWTH \"A\" INC","LU0593848301.USD":"未来资产亚洲卓越消费股票基金A","LU0043850808.USD":"HSBC GIF ASIA EX JAPAN EQUITY \"AD\" INC","BK1610":"ETF&股票定投概念","LU0320764599.SGD":"FTIF - Templeton China A Acc SGD","LU0577902611.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"A\" (USD) ACC","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","LU0359202008.SGD":"Blackrock China Fund A2 SGD-H","LU0348816934.USD":"ALLIANZ TOTAL RETURN ASIAN EQUITY \"AT\" (USD)","LU0072462343.USD":"贝莱德亚洲巨龙基金","LU0541501648.USD":"ALLSPRING  EMERGING MARKETS EQUITY \"A\" (USD) ACC","BK1591":"就地过年概念","BK1142":"互联网与直销零售","LU0072913022.USD":"UBS (LUX) EQUITY FUND -  GREATER CHINA \"P\" (USD) ACC","LU0039217434.USD":"HSBC GIF CHINESE EQUITY \"AD\" INC","LU0577902298.EUR":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (EUR) ACC","BK1233":"餐馆","LU0140636845.USD":"施罗德大中华区股票A Acc","LU0214875030.USD":"HSBC GIF BRIC EQUITY \"M2C\" (USD) ACC","LU0572944931.SGD":"Janus Henderson Horizon China Opportunities A2 SGD","LU0048580855.USD":"富达大中华区A","LU0588545490.SGD":"Eastspring Investments - Asian Equity Income AS SGD","LU0541502299.USD":"ALLSPRING  EMERGING MARKETS EQUITY \"I\" (USD) ACC","LU0577902538.SGD":"Fullerton Lux Funds - Asia Growth and Income Equities A Acc SGD","03690":"美团-W","LU0431992006.USD":"摩根大通新兴市场机会A（acc）","LU0588545904.SGD":"Eastspring Investments - Asian Equity Income ASDM SGD","BK1575":"同股不同权","LU0449515922.USD":"HSBC GIF GLOBAL EMERGING MARKETS EQUITY \"PC\" (USD)ACC","LU0348735423.USD":"ALLIANZ HONG KONG EQUITY \"A\" (USD) INC","IE0032431581.USD":"PINEBRIDGE GREATER CHINA EQUITY \"A\" (USD) ACC","BK1589":"北水核心资产","LU0588545730.USD":"EASTSPRING INVESTMENTS ASIAN EQUITY INCOME \"ADM\" (USD) INC","IE0034224299.USD":"PINEBRIDGE ASIA EX JAPAN EQUITY \"A\" (USD) ACC","LU0543330483.HKD":"TEMPLETON ASIAN GROWTH \"A\" (HKD) ACC","LU0456827905.SGD":"JPMorgan Funds - China A (acc) SGD"},"translate_title":"美团-W（HKG：3690）26%的股价涨幅没有告诉你什么","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"03690":1},"content_text":"Meituan (HKG:3690) shares have had a really impressive month, gaining 26% after a shaky period beforehand.    Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 34% over that time.    After such a large jump in price, you could be forgiven for thinking Meituan is a stock not worth researching with a price-to-sales ratios (or \"P/S\") of 1.8x, considering almost half the companies in Hong Kong's Hospitality industry have P/S ratios below 0.9x.   Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.     Check out our latest analysis for Meituan SEHK:3690 Price to Sales Ratio vs Industry March 11th 2024 What Does Meituan's Recent Performance Look Like?  Recent times haven't been great for Meituan as its revenue has been rising slower than most other companies.   Perhaps the market is expecting future revenue performance to undergo a reversal of fortunes, which has elevated the P/S ratio.  However, if this isn't the case, investors might get caught out paying too much for the stock.      Want the full picture on analyst estimates for the company? Then our free report on Meituan will help you uncover what's on the horizon.   Is There Enough Revenue Growth Forecasted For Meituan?   The only time you'd be truly comfortable seeing a P/S as high as Meituan's is when the company's growth is on track to outshine the industry.   Taking a look back first, we see that the company grew revenue by an impressive 26% last year.    The latest three year period has also seen an excellent 153% overall rise in revenue, aided by its short-term performance.  Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.     Shifting to the future, estimates from the analysts covering the company suggest revenue should grow by 19% per year over the next three years.  Meanwhile, the rest of the industry is forecast to expand by 18% each year, which is not materially different.  In light of this, it's curious that Meituan's P/S sits above the majority of other companies.  Apparently many investors in the company are more bullish than analysts indicate and aren't willing to let go of their stock right now.  These shareholders may be setting themselves up for disappointment if the P/S falls to levels more in line with the growth outlook.    The Bottom Line On Meituan's P/S  The large bounce in Meituan's shares has lifted the company's P/S handsomely.      Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.  Given Meituan's future revenue forecasts are in line with the wider industry, the fact that it trades at an elevated P/S is somewhat surprising.  The fact that the revenue figures aren't setting the world alight has us doubtful that the company's elevated P/S can be sustainable for the long term.  This places shareholders' investments at risk and potential investors in danger of paying an unnecessary premium.      Plus, you should also learn about this   1 warning sign we've spotted with Meituan.  If you're unsure about the strength of Meituan's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed. Valuation is complex, but we're helping make it simple.Find out whether Meituan is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2418710873"}