Meituan, which used to be beautiful, has been a little bad lately! The market value has dropped by 2 trillion, which is a large amount, which makes people staggered, the market value has dropped by 2 trillion, and Meituan Wang Xing can't sit still!
At the beginning, Meituan was the largest in Hong Kong, with a market value of more than 2 trillion Hong Kong dollars, firmly occupying the third place in Hong Kong stocks. At that time, Meituan was in the limelight and was affectionately known as an Internet giant.
However, the good times were short-lived! Since November last year, Meituan's stock price has been on a roller coaster.
A few days ago, the stock price fell below the issue price, and the market value was even lower than at the beginning of the listing. This is really surprising, after five years of hard work, it is better not to do it.
Faced with such a predicament, Wang Xing, the big guy, was not idle. He acted quickly, and starting on January 10, Meituan spent about HK$400 million on share buybacks for several consecutive trading days in an attempt to stabilize the stock price.
Although it finally stabilized at 420 billion Hong Kong dollars, that is, the market value of the issue, this figure is obviously far from enough for Wang Xing.
At Meituan's performance meeting, Wang Xing directly shouted to investors, "Meituan's share price is undervalued", "Meituan's stock price in the secondary market only reflects the valuation of a single food delivery business, and does not meet the company's intrinsic value." ”
This sentence is not said casually, it reflects from the side that Wang Xing is really anxious. In the past, when Meituan's stock price was released after the earnings report, they usually took measures to reduce costs and increase efficiency, but this approach could only maintain the stock price for a period of time.
Just as Meituan only achieved a market value of 2 trillion yuan because of its brilliant financial report data, now they are facing new challenges.
For a while, Meituan adjusted its delivery rules. The original commission is broken down into three parts: the service fee calculated according to the distance and the ** period.
This new policy will be implemented in all cities directly operated by Meituan Takeaway from May 1, 2021.
This change brought Meituan's food delivery transaction value and growth rate back to the upside, so in September 2021, Meituan's stock price began to recover, which lasted until the end of 2021.
However, the good times were short-lived! The market has been questioning Meituan about the issue of "high commissions".
In the face of these problems, Wang Xing said in an earnings report, "The revenue of the delivery service business contributed by merchants and consumers still cannot cover the cost of delivery fees we pay to couriers." ”
In other words, Wang Xing is ready to make more money.
But the reality is brutal. Transaction commissions are difficult to adjust, and the food delivery business has also encountered bottlenecks.
In 2022-2023, when Meituan had to reduce its commission rate, the number of users on the entire platform did not increase significantly, but due to the impact of the economic downturn, the unit value of customers also declined, and the prospects of Meituan's core business are no longer so rosy.
In order to solve this problem, Meituan had to find another way. They are starting to look to local life and new businesses.
Local life refers to the services provided to local businesses such as catering, leisure and entertainment, and life services, similar to the upgraded version of Meituan-Dianping.
Merchants promote online, and consumers consume online and fulfill offline. The original giants in this field were online reviews such as Dianping and Meituan-Dianping**.
Meituan-Dianping's victory in the 2012 Battle of 1,000 Regiments and the merger with Dianping undoubtedly occupied the top position.
This part of the business was Meituan's "cash cow" before, after all, it has become one of the leading companies in the industry.
In addition to the local lifestyle business, Wang Xing also has high hopes for new businesses. At first, Meituan wanted to be an enterprise service provider in the catering industry, not only providing delivery services, but also successively launching services such as Meituan Preferred, Meituan Grocery Shopping, Catering ** Chain Kuaidu, online car-hailing, and shared bicycles.
However, the development of these new businesses has not been smooth sailing. The strategy of the new business is still the same as that of Meituan: in the early stage, it will seize the market through advertising, subsidies and other means, increase market share, and collect service fees after users have become sticky.
However, with the changes in the market and the rise of competitors, the development of these new businesses also faces many challenges and dilemmas.
Now it seems that Wang Xing's pressure is really not small! Not only did the market value drop of 2 trillion Hong Kong dollars make investors disheartened, but also faced the dilemma of new business and the challenge of competitors, which is really internal and external!
However, I believe that with his ingenuity, he will be able to lead the team out of the trough and create brilliance again!