Meituan Dianping has a market value of HK 440.9 billion and Xiaomi has a market value of HK 223.8 bi

Judging from the financial data, the Xiaomi Group, which has already made billions of yuan, is obviously doing better. On August 22, Xiaomi Group handed over its first report card after listing, and the company's revenue in the first half of 2018 was about 100 million yuan, a year-on-year increase, and the adjusted profit was 100 million yuan, a year-on-year increase. The latest announcement of Meituan Dianping in the first four months of 2018 is still in huge losses.

Financial data show that from January to April this year, the company achieved a total operating income of 100 million yuan, almost twice that of the same period last year; However, in the same period, the company's loss widened from 100 million yuan in the same period of 2017 to 100 million yuan, and the year-on-year loss increased by about 3 times.

But the Hong Kong stock capital market seems to prefer the "story" of Meituan Dianping. Xiaomi describes itself as "an Internet company with mobile phones, smart hardware and IoT platforms at its core". At the end of 2013, the company started the ecological chain plan, using its own funds to directly invest in related ecological chain enterprises.

GF** believes that Xiaomi Group, like Apple, relies on smart hardware with mobile phones as the core as the fist drainage products to build a user ecosystem. Compared with Xiaomi Group, which has built an ecological chain of "hardware manufacturing", Hong Kong stock investors seem to prefer Meituan Dianping, which belongs to the life service industry and is considered "borderless" by founder Wang Xing.

As we all know, Meituan Dianping was merged with Dianping in 2015 and did not officially change its name until 2018. Today, the company has four major business divisions: in-store, home-to-home, travel, and large-scale retail, involving comprehensive service scenarios such as eating, drinking, and playing in the event of a single business, such as takeaway, hotel reservation, travel ticketing, movies, online car-hailing, and shared bicycles.

According to the Meituan-Dianping prospectus, the company is China's leading e-commerce platform for life services, using technology to connect consumers and merchants, providing services to meet people's daily "food" needs, and further expanding to a variety of life and travel services. In other words, around the daily needs such as "food, housing, use and transportation", Meituan Dianping can continue to attach various businesses.

Because Meituan uses it much more on a daily basis than Xiaomi, its market capitalization is so high.

Because Meituan is getting bigger and bigger, while Xiaomi is not a big company.

Because Meituan is very popular now, everyone likes to order takeout, so it is normal to say that it is more popular than Xiaomi.

Because Meituan has a very large number of users, and their market is huge.

Because people's lives are almost inseparable from takeaways, Meituan's market development is very good.

Because Meituan is used in such a vast area, its market capitalization is very high.

Maybe Meituan uses a wide range of units, so it's more valuable.

Because Meituan is used almost every day, and Xiaomi just releases new mobile phones from time to time.

Meituan and Xiaomi are two different institutions, how can they be compared in this aspect alone.

I think the main reason is that Meituan is very strong now, after all, many people use it, and Xiaomi doesn't use it much.

Meituan's market capitalization has exceeded $200 billion.

1.Meituan's share price surged 8%, reaching HK$265.

Industrial and Commercial Bank of China, Ping An of China.

3.Meituan has just announced its financial report for the second quarter of 2020, which shows that Meituan's revenue in the second quarter was 24.7 billion yuan, a year-on-year increase.

4.Meituan's profit in the second quarter of 2020 was 100 million yuan, an increase from 100 million yuan in the same period last year. Meituan's profitability for the second quarter of 2020 was compared to the same period last year.

5.Meituan's adjusted net profit for the second quarter of 2020 was 100 million yuan, up 82% from 100 million yuan in the same period last year.

Extended Information: Meituan Profile:

2.Meituan's mission is to "be better together". As a leading e-commerce platform for life services in China, the company owns Meituan and Dianping.

Meituan Takeaway and other well-known apps cover more than 200 categories such as catering, takeaway, fresh food retail, taxi-hailing, bicycle sharing, hotel tourism, movies, leisure and entertainment, and its business covers 2,800 counties, districts and cities across the country.

3.At present, Meituan's strategy focuses on food + platform, and is building a multi-level technology service platform for the life service industry from the demand side to the supply side with "eating" as the core. At the same time, Meituan is focusing on building itself into a social enterprise, hoping to build a smart city through in-depth cooperation with party and government departments, universities and research institutes, mainstream **, public welfare organizations, ecological partners, etc.

Create a better life together.

You can refer to Graham and Warren Buffett's views.

The essential gap between value and valuation.

Meituan's PE is close to 300 times. If it is based on today's valuation, it is indeed seriously overvalued. But the market is irrational. Overestimation can also last a long time. Underestimation can also last longer.

But that's not the point of looking at the problem. Instead, it is necessary to calculate Meituan's annualized compound growth rate.

Until 2018, it was in a state of loss. Explosive growth in 2019 and 2020. Meituan has monopolized the food delivery market.

And the customer stickiness is getting higher and higher. If the annual growth rate continues to increase significantly in the future, then the current ** will not be high in a few years.

In other words, the change in valuation will become reasonable or undervalued as the company's growth rate increases. At today's prices, it's definitely overvalued. As for whether to invest or not, it depends on how you value it and look at its prospects.

Personally, I don't invest in Meituan. The reason is that there are a lot of better targets than it.

Meituan's market value evaporated nearly one trillion Hong Kong dollars in two months, and the specific reason for this is that the official answer is:Due to the impact of the new business launched by Meituan, Meituan Preferred, grocery shopping, flash sales, unmanned driving, etc.

Then some people may want to ask, the new business is to help the platform make better money, if you can't make money but lose money, and you have to be affected by other reputations, then why do it. First of all, of course, these are not the results that every capitalist wants to see, but for the sake of long-term interests, this is not necessarily a necessary growth process, and when choosing to do any new business, no one can accurately calculate how much profit and loss is.

The second is that major platforms use new business competition to try to stand out, so other platforms can only follow the trend in order not to be left behind, and the same is true for Meituan, so it has added a lot of popular businesses. So among these new businesses, the most money-burning ones are the very popular communities**. <>

First, a variety of factors have caused the community to become an asset-heavy mode of operation

Under normal circumstances, we believe that the goods in the community are low because of the pre-sale model, and the platform where suppliers and customers are directly connected throughout the whole process, eliminating the difference in merchant income, so the cost is naturally very low. Well, in fact, setting up this model is not necessarily a cost saving than the old retail model.

First of all, it is necessary to establish a large number of central warehouses and shared warehouses for warehouse distribution, manage massive inventory and how to distribute categories according to market demand, which is also a great risk and test for operations, in addition to the need to invest a large number of management costs for the head of the group, procurement and other personnel, as well as the retention of users and how to maintain the repurchase rate and other operational issues of this model, from all of this point of view, it will require a very large capital cost investment. <>

Second, the operation of new business is still growing in exploration

The major giant platforms have carried out community business since last year, although the business seems to be stable and popular, but they are all quickly joined, most of them are in the form of following the trend, whether they have a very accurate profit of the first time, and most of them go hand in hand, rush up, and there are few platforms for reference, even if there are one or two platforms using the new business model to really achieve profitability, it does not mean that all platforms are suitable for this model. <>

3. Conflicts between community ** business and other businesses

We all know that the community ** business and flash shopping are actually very beneficial to most of our families, which bring great convenience to problems such as buying food, cooking and eating, and also save a lot of living expenses, but because of this, after we enjoy these conveniences, we rarely go to the restaurant to eat or order takeout, so Meituan's original eating, drinking, and entertainment ** and the performance of the takeaway platform business have naturally declined a lot. We also know that most of Meituan's earnings depend on these old businesses, so I think this is also a major reason for the decline in market capitalization.

This is because Meituan forced merchants to sign a contract of one choice and was forced to pay a fine, so many shareholders sold one after another, causing Meituan's stock price to plummet, evaporating trillions of Hong Kong dollars in two months!

Because Meituan has recently opened up new areas and made multi-point investments, such attempts have made shareholders and investors pessimistic about this uncertainty, and finally chose ****.

It is because Meituan has lost the trust of consumers and is suspected of monopoly, which will lead to such a phenomenon.