Meituan’s 63% Stock Surge Faces Risks in China Consumer Malaise
- Food delivery firm’s cheap offering has boosted growth, shares
- Weak macro, retailers’ struggles among reasons for caution
Food delivery couriers for Meituan in Shanghai.
Photographer: Qilai Shen/BloombergMeituan’s strategy to focus on lower prices has helped the Chinese food delivery company beat sales targets even as the slowing economy drags peers. Investors are now wondering whether its steep share-price gains can last as the macro weakness deepens.
The firm last month posted 21% sales growth and a record high gross margin for the latest quarter despite anemic consumer spending. Backed by strong results, its Hong Kong-listed stock has surged 63% this year, outperforming all global food-delivery peers and topping the Hang Seng China Enterprises Index in 2024.