Meitu (1357) AI Stock Analysis

• Market Cap: HK$35.41B
• Dividend Yield: 2.92%
• Average Volume (3M): 72.77M
• Price to Earnings (P/E): 36.1
• Beta (1Y): 1.53
• Revenue Growth: 15.57%
• EPS Growth: 94.36%
• Country: HK
• Employees: 2,416
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.09
• Shares Outstanding: 4,586,179,000
• 10 Day Avg. Volume: 47,894,230
• 30 Day Avg. Volume: 72,773,875
• PEG Ratio: 0.12
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 3.76
• P/FCF Ratio: 17.94
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$12.96
• Price Target Upside: 67.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$9.00 ▲(16.58% Upside)

The score is driven primarily by strong financial performance (growth, margins, and low leverage). Offsetting this, technical indicators suggest the stock is overbought in the near term, and valuation is relatively expensive given the P/E despite a modest dividend yield.

Positive Factors

Revenue Growth

Sustained 24% top-line growth over 2023–2024 signals expanding user engagement and monetization effectiveness. Durable revenue expansion supports reinvestment in product, AI and hardware integration, underpinning longer-term market share gains and funding competitive initiatives.

High Profitability & Margins

Very high gross margins and a strong net margin indicate durable pricing power and efficient cost structure. Such margin profile supports robust cash generation, allows sustained R&D and marketing investment, and provides a buffer versus competition and margin compression risks.

Conservative Balance Sheet

Extremely low leverage and a high equity ratio provide financial flexibility to fund product development, hardware initiatives, and M&A without heavy borrowing. Improved ROE indicates effective capital use, strengthening resilience across downturns and long-term strategic execution.

Negative Factors

Free Cash Flow Conversion

Falling short of full conversion of reported earnings into free cash flow suggests some earnings are not yet cash-backed, which can constrain discretionary spending, dividends or buybacks. Improving conversion is important for durable shareholder returns and self-funded growth programs.

Revenue Concentration Risk

Heavy dependence on virtual goods, in-app purchases and ad revenue concentrates cashflow on user engagement metrics. That exposes structural risk to changes in consumer preferences, platform policy, privacy/regulatory shifts and ad market cycles, affecting long-term revenue stability.

Elevated Earnings Volatility

A beta around 1.52 implies higher sensitivity to market swings and potentially greater earnings and cash-flow volatility. Over the medium term this can complicate planning, increase cost of capital for investments, and make stable capital allocation decisions more challenging.

Meitu Business Overview & Revenue Model

Company Description

Meitu, Inc., an investment holding company, operates as an internet company in the People's Republic of China and internationally. It offers a portfolio of photo and community apps, including the Meitu app, BeautyCam, BeautyPlus, Meipai, MeituEve, Airbrush, MeituGenius, and others. The company also provides online advertising, VIP subscription and image software as a service, internet value-added, influencer marketing, advertising agency, and other services. In addition, it offers information technology and online recruitment services; and develops and operates apps. Further, the company is involved in the smart hardware business. Meitu, Inc. was founded in 2008 and is headquartered in Xiamen, the People's Republic of China.

How the Company Makes Money

Meitu generates revenue through multiple streams, including in-app purchases, advertising, and hardware sales. A significant portion of its income comes from the sale of virtual goods and features within its mobile apps, where users can pay to access premium editing tools and effects. The company also earns money through advertising partnerships within its apps, leveraging its large user base to attract brands looking to reach a younger demographic. Additionally, Meitu's hardware sales, which include smartphones and other devices that feature its software, contribute to its overall earnings. Collaborations with other tech companies and brands for promotional campaigns further bolster its revenue.

Meitu Financial Statement Overview

Summary

Strong fundamentals supported by 24% revenue growth (2023–2024), high gross margin (~68.7%), and improved profitability with a 24.1% net margin. Balance sheet is conservatively financed (debt-to-equity 0.06; equity ratio 71.3%) with improving ROE (16%). Cash generation is solid (operating cash flow to net income 0.93) with rising free cash flow, though free cash flow conversion is slightly below 1.

Income Statement

The company has shown impressive revenue growth with a consistent upward trajectory over the years, achieving a 24% increase from 2023 to 2024. The gross profit margin is strong at approximately 68.7%, indicating effective cost management. Additionally, the net profit margin has increased significantly to 24.1% in 2024, reflecting improved profitability. EBIT and EBITDA margins have also improved, showcasing enhanced operational efficiency.

Balance Sheet

The balance sheet shows a healthy equity position with a debt-to-equity ratio of 0.06, indicating low leverage and financial stability. Return on Equity (ROE) has improved to 16% in 2024, demonstrating effective utilization of equity to generate profits. The equity ratio stands at a solid 71.3%, underscoring strong financial health and low reliance on debt.

Cash Flow

Operating cash flow has shown robust growth, with the operating cash flow to net income ratio at 0.93, indicating strong cash generation relative to net income. Free cash flow has significantly increased, reflecting effective cash management and investment strategies. However, the free cash flow to net income ratio is slightly below 1, suggesting room for improvement in converting income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.54B	3.34B	2.70B	2.09B	1.67B	1.19B
Gross Profit	2.58B	2.29B	1.66B	1.19B	1.13B	793.87M
EBITDA	713.93M	581.69M	320.01M	-47.03M	-41.23M	-47.66M
Net Income	898.77M	805.18M	378.29M	94.14M	-44.51M	-40.97M
Balance Sheet
Total Assets	6.71B	7.05B	5.77B	5.00B	4.75B	4.51B
Cash, Cash Equivalents and Short-Term Investments	2.63B	2.96B	1.31B	1.34B	1.23B	2.03B
Total Debt	226.79M	318.35M	90.28M	38.15M	48.54M	33.78M
Total Liabilities	1.93B	2.01B	1.65B	1.29B	1.23B	939.33M
Stockholders Equity	4.79B	5.03B	4.11B	3.77B	3.52B	3.55B
Cash Flow
Free Cash Flow	957.92M	699.48M	356.82M	183.58M	-60.98M	-262.35M
Operating Cash Flow	983.40M	745.81M	413.23M	233.99M	-26.32M	89.21M
Investing Cash Flow	484.70M	7.17M	-644.63M	-16.77M	-330.42M	273.44M
Financing Cash Flow	-793.23M	-104.07M	-81.16M	-37.03M	-51.24M	-43.47M

Meitu Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1357, the sentiment is Negative. The current price of 7.72 is below the 20-day moving average (MA) of 8.22, below the 50-day MA of 7.85, and below the 200-day MA of 8.30, indicating a bearish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 14.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1357.

Meitu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1024	77 Outperform	HK$349.90B	18.28	25.67%	―	11.37%	16.74%
1357	73 Outperform	HK$35.41B	36.14	19.44%	2.92%	15.57%	94.36%
9888	63 Neutral	HK$420.23B	50.45	3.29%	―	-2.92%	-57.12%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9898	60 Neutral	HK$20.54B	6.24	12.49%	8.13%	-1.40%	22.37%
2390	53 Neutral	HK$2.42B	22.37	2.39%	―	-23.80%	―
1896	49 Neutral	HK$8.53B	103.97	0.82%	4.71%	-7.61%	-90.51%

Meitu Corporate Events

Meitu Announces Proposed Separate Hong Kong Listing of Investee HBN

Meitu has disclosed that its investee company Shenzhen HBN Technology (Group) Company Limited, in which the group holds approximately a 23.81% equity interest on a fully diluted basis, has applied for a separate listing on the Main Board of the Hong Kong Stock Exchange. HBN, recently converted into a joint stock company, has submitted a Form A1 listing application, though details of the offer size, structure and timetable have not yet been provided, and Meitu cautioned shareholders that the proposed listing remains subject to HBN’s board decision and regulatory approval and therefore may or may not proceed, underscoring both the potential value realisation opportunity and the associated uncertainty for investors.

The most recent analyst rating on (HK:1357) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Meitu stock, see the HK:1357 Stock Forecast page.

Meitu Sets March Board Meeting to Approve 2025 Results and Mull Final Dividend

Meitu, Inc. has scheduled a board meeting for March 27, 2026 to review and approve the group’s audited annual results for the financial year ended December 31, 2025 and to authorize their publication. The board will also consider recommending a final dividend, a decision that could directly affect shareholder returns and signal management’s confidence in Meitu’s financial performance and cash position.

The most recent analyst rating on (HK:1357) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Meitu stock, see the HK:1357 Stock Forecast page.

Meitu Grants New Share Awards to Employees Under Incentive Scheme

Meitu, Inc. has granted 249,816 share awards, equivalent to about 0.01% of its issued share capital, to selected employees under its share award scheme, with the awards vesting in equal tranches over 24 months and satisfied through the issuance of new shares. The company positions this grant as a tool to recognize employee contributions, align staff incentives with group performance and share price appreciation, and support ongoing operations and development, while confirming that no directors, chief executives, substantial shareholders, or other related parties are among the grantees and that ample capacity remains under the scheme for future grants, including to service providers.

The most recent analyst rating on (HK:1357) stock is a Buy with a HK$14.10 price target. To see the full list of analyst forecasts on Meitu stock, see the HK:1357 Stock Forecast page.

Meitu Raises US$250 Million via Convertible Bonds and Seals Strategic Cooperation with Subscriber

Meitu has completed the issuance of US$250 million in convertible bonds under its general mandate, with closing taking place on 31 December 2025 and the bonds fully subscribed by a single investor referred to as the Subscriber. In tandem, Meitu and the Subscriber have signed a business cooperation framework covering a range of commercial collaboration areas, with detailed implementation agreements to follow and transaction amounts to be calculated from the dates of those specific contracts, signalling a deeper strategic relationship beyond financing. The company plans to deploy the roughly US$249.6 million in net proceeds for general business purposes, while the fair value of the bonds at closing is expected to exceed their principal by an estimated US$69 million to US$77 million; this excess will be booked as a one-off, non-cash share-based compensation expense under IFRS 2, affecting reported earnings but not cash flow. Upon full conversion of the bonds at HK$6.00 per share, the Subscriber would own about 6.82% of Meitu’s enlarged share capital, diluting existing shareholders but strengthening the company’s capital base and potentially bolstering its strategic positioning through the new cooperation arrangements.

The most recent analyst rating on (HK:1357) stock is a Buy with a HK$14.10 price target. To see the full list of analyst forecasts on Meitu stock, see the HK:1357 Stock Forecast page.