Meituan: Cutting Its Way To Profit Growth

Robert Way Meituan (OTCPK: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 fo ...