Dianping develops a group buying website for locally found consumer products and retail services.
Report on Poverty Alleviation for Takeaway Rider Employment 2019. The report shows that in 2019, there were a total of 3.987 million takeaway riders employed on the Meituan platform, of which 257,000 were poor people who set up files. 253,000 of these riders have achieved poverty alleviation, and the poverty alleviation rate is as high as 98.4%.
Meituan is just such a company. Starting from the three-bedroom in Huaqing Jiayuan, Beijing, it is now firmly in the third place in China's Internet industry. Needless to say the excellence of the Meituan group, what did the Meituan group do correctly in the development process? In the next ten years, where is the upper limit of Meituan?
Meituan has already occupied the first camp of the Chinese Internet. At this stage, the valuation of 500 billion HK$ is just the beginning, and its ceiling is far from over.
We are bullish on Meituan Dianping（“MD”）’s strong topline growth and margin improvement，backed by its sizable users，one-stop lifestyle services，unique UGC and powerful logistic network.We forecast MD to deliver 35% revenue CAGR during FY18-21E.With epidemic impact partly priced in，we think MD’s valuation is not demanding.Initiate with BUY with DCF-based TP HK$126.3.
Neutral and most pessimistic assumptions were made on Meituan ’s in-store wine travel business and takeaway business respectively, in order to make it easier to understand the impact of the epidemic on Meituan ’s business, and further clarify the “bottom” of Meituan ’s valuation.