Others, who didn’t have a worth goal for the corporate promoting on-line providers from meals supply to ticketing, mentioned the corporate is tough to worth.
“I feel Meituan Dianping is difficult to worth as a result of it is not worthwhile, and its losses are widening,” Leo Solar, tech and shopper items specialist at The Motley Idiot, instructed CNBC in an e-mail. “I would not essentially name it ‘overvalued’ at lower than four occasions final yr’s gross sales, nevertheless it may actually go decrease if it fails to slender its losses.”
“I do assume Meituan has quite a bit to show to justify their valuation,” mentioned Jackson Wong, affiliate director at Huarong Worldwide Securities.
Responding to CNBC’s characterization of these analyst feedback, a spokesman for Meituan mentioned the corporate is poised for progress.
“For the yr ended December 31, 2018, our monetary outcome confirmed that whole income elevated by 92.three% year-over-year to RMB65.2 billion, from RMB33.9 billion in 2017. The corporate achieved sturdy income progress throughout all main enterprise segments,” he mentioned. “Particularly, the corporate’s two largest enterprise segments, meals supply phase and in-store, lodge & journey phase, on a mixed foundation generated constructive adjusted working revenue in 2018. This essential milestone has demonstrated that Meituan’s ‘Meals + Platform’ technique can fulfill its appreciable monetization potential and set up a wholesome basis to help investments in new initiatives to propel its future progress.”