Meitu Inc (HK:1357)
:1357
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Meitu
(1357)
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Rating:73Outperform
Price Target:
HK$8.00
▲(85.19% Upside)
Action:UpgradedDate:01/13/26
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 indicates durable user adoption and expanding monetization reach across Meitu’s apps. Continued revenue expansion over multiple years supports reinvestment in product development and network effects that can compound user engagement and lifetime value.
Negative Factors
Business Model Concentration
Heavy reliance on ads and in‑app monetization ties earnings to user engagement, ad pricing and conversion rates. Competitive pressure in consumer apps can compress monetization over time, making sustained growth dependent on continuous product innovation and retention.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained 24% top‑line growth indicates durable user adoption and expanding monetization reach across Meitu’s apps. Continued revenue expansion over multiple years supports reinvestment in product development and network effects that can compound user engagement and lifetime value.
Read all positive factors
Meitu (1357) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$19.81B
Dividend Yield2.92%
Average Volume (3M)72.77M
Price to Earnings (P/E)50.3
Beta (1Y)1.64
Revenue Growth15.57%
EPS Growth94.36%
CountryHK
Employees2,416
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.08
Shares Outstanding4,586,179,000
10 Day Avg. Volume47,894,230
30 Day Avg. Volume72,773,875
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)2.50
Price to Sales (P/S)3.76
P/FCF Ratio17.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$9.80Price Target Upside126.75% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.27
Revenue Forecast (FY)HK$4.97B
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,...
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 acc...
Meitu Earnings Call Summary
Earnings Call Date:Mar 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call conveyed robust operating and product momentum: double‑digit revenue growth, strong core product expansion (+41.6% YoY), large increases in adjusted net profit (+64.7% YoY), meaningful subscriber growth (paying subscribers +34.1%, productivity paying subscribers +67.4%), and clear globalization traction. Management also disclosed rising costs, modest margin compression, flat advertising revenue, a noncash accounting charge impacting IFRS profit, and a small operational disclosure lapse. Management articulated a clear strategy (productivity + globalization, model‑agnostic approach, AI agents) and provided guidance to control expenses while shifting revenue mix to higher‑value productivity offerings. On balance, the positive growth, improving monetization and global product wins outweigh the transitory negatives and one‑offs reported.Positive Updates
Strong Revenue Growth
Total revenue rose 28.8% year‑over‑year to RMB 3.86 billion in FY2025, driven by core photo, video and design products which grew 41.6% YoY to RMB 2.95 billion.
Negative Updates
IFRS Net Profit Decline vs Prior Year
IFRS net profit attributable to owners was ~RMB 700 million in 2025, down from ~RMB 800 million in 2024. The comparison was affected by a one‑time RMB 640 million gain in 2024 (cryptocurrency disposal) and a noncash RMB ~510 million expense in 2025 related to convertible bonds issued to Alibaba.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Total revenue rose 28.8% year‑over‑year to RMB 3.86 billion in FY2025, driven by core photo, video and design products which grew 41.6% YoY to RMB 2.95 billion.
Read all positive updates
Company Guidance
Guidance highlights: management will begin issuing quarterly updates on key operating metrics, initiated a HKD 300 million one‑year share buyback, and expects to control personnel costs via AI while shifting mix toward higher‑ARPU productivity tools and AI agents—they said 2026 top‑line will be broadly in line with 2025 but the composition will skew more to productivity with faster acceleration in subsequent years. Key operating targets and benchmarks cited include maintaining gross margin above ~70% (2025: 73.6%), driving ARPU through AI agents (DesignKit agent save rate ~50%; Kaipai agent penetration ~11%; oversubscription rate 6.1%), and growing subscriptions (paying subscribers 16.91M, +34.1% YoY; productivity paying subs +67.4%; productivity subscription penetration 9%, +3.1pp). Recent 2025 context to benchmark progress: revenue RMB 3.86B (+28.8%), core photo/video/design RMB 2.95B (+41.6%) with international revenue +37.4% (38% of total), adjusted net profit attributable ~RMB 970M (+64.7%), and ongoing cost focus (total cost RMB 1.02B, +42%; compute/cloud RMB 230M, +16.4%; R&D RMB 950M, +3.8% with ex‑foundational training spend +14.5%).Meitu Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
| 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
Negative
4.32
Price Trends
6.01
Negative
6.96
Negative
8.25
Negative
Market Momentum
-0.45
Positive
24.54
Positive
23.02
Neutral
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 4.32 is below the 20-day moving average (MA) of 4.93, below the 50-day MA of 6.01, and below the 200-day MA of 8.25, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 24.54 is Positive, neither overbought nor oversold. The STOCH value of 23.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1357.
Meitu Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$196.06B | 13.56 | 25.44% | ― | 11.37% | 16.74% | |
73 Outperform | HK$19.81B | 50.25 | 11.09% | 2.92% | 15.57% | 94.36% | |
66 Neutral | HK$1.16B | 2.03 | 6.72% | 4.08% | -17.47% | -7.94% | |
65 Neutral | HK$4.42T | 22.32 | 20.51% | 0.75% | 13.15% | 30.78% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | HK$16.62B | 5.39 | 12.13% | 8.13% | -1.40% | 22.37% | |
50 Neutral | HK$1.84B | -9.81 | -4.72% | ― | -23.80% | ― |
* Communication Services Sector Average
HK:1357
Meitu
4.32
-0.19
-4.19%
HK:0700
Tencent Holdings
489.20
52.61
12.05%
HK:3700
Inke Ltd.
0.64
-0.57
-47.11%
HK:9898
Weibo Corp Class A
68.05
6.55
10.65%
HK:1024
Kuaishou Technology Class B
44.90
-0.75
-1.64%
HK:2390
Zhihu, Inc. Class A
7.30
-2.45
-25.13%
Meitu Corporate Events
Meitu Announces Proposed Separate Hong Kong Listing of Investee HBN
Jan 26, 2026
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 Ho...
Meitu Sets March Board Meeting to Approve 2025 Results and Mull Final Dividend
Jan 16, 2026
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 recommendin...
Meitu Grants New Share Awards to Employees Under Incentive Scheme
Jan 1, 2026
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...
Meitu Raises US$250 Million via Convertible Bonds and Seals Strategic Cooperation with Subscriber
Dec 31, 2025
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 an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.