MPNGY - Meituan: Cutting Its Way To Profit Growth
2024-06-04 02:30:23 ET
Summary
- Meituan has suffered years of profitless growth in its new business portfolio.
- But management is finally righting the ship.
- With plenty of upside levers in the core business as well, Meituan stock is worth a revisit.
Meituan ( MPNGY ), having started out as China's premier on-demand food delivery platform, has branched out into adjacent service offerings like in-store hotel & travel, as well as various other new business initiatives. While this has allowed Meituan to build one of the richest app ecosystems in the country, it has also come at a heavy P&L cost (a key concern I outlined in my prior coverage ) and prolonged equity underperformance. No surprise, then, that investors are a lot more optimistic following management's recent pivot from growth to profitability....
Meituan: Cutting Its Way To Profit Growth