Meitu Inc (HK:1357)
:1357
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Meitu
(1357)
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Rating:66Neutral
Price Target:
HK$5.00
▲(7.99% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by solid financial performance (strong multi-year growth, high gross margins, and improved cash generation) tempered by 2025 margin compression and higher leverage. Earnings-call commentary supports the outlook via strong subscriber/productivity momentum and a buyback, but near-term guidance points to slower top-line growth. Technicals and valuation are the main drags, with a still-weak longer-term trend and a high P/E partly offset by a strong dividend yield.
Positive Factors
Sustained revenue growth & high gross margin
Meitu’s multi-year revenue compounding with a gross margin around 73–74% indicates durable monetization of core imaging products. High gross profitability provides structural capacity to invest in product R&D and AI features, supporting long-term unit economics even as mix shifts.
Negative Factors
Rising operating costs and margin pressure
A sharp 42% rise in total costs and higher compute, revenue‑share and S&M spend drove net margin down materially. If operating cost growth persists, it can erode operating leverage and limit free cash flow expansion, making profitability sensitive to execution and mix shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth & high gross margin
Meitu’s multi-year revenue compounding with a gross margin around 73–74% indicates durable monetization of core imaging products. High gross profitability provides structural capacity to invest in product R&D and AI features, supporting long-term unit economics even as mix shifts.
Read all positive factors
Meitu (1357) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$20.68B
Dividend Yield2.92%
Average Volume (3M)72.77M
Price to Earnings (P/E)39.1
Beta (1Y)1.74
Revenue Growth15.59%
EPS Growth-28.12%
CountryHK
Employees2,416
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.13
Shares Outstanding4,586,179,000
10 Day Avg. Volume47,894,230
30 Day Avg. Volume72,773,875
Financial Highlights & Ratios
PEG Ratio-3.77
Price to Book (P/B)4.31
Price to Sales (P/S)6.33
P/FCF Ratio20.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$8.41Price Target Upside81.61% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)0.27
Revenue Forecast (FY)HK$4.92B
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 makes money primarily by monetizing its consumer apps and related products through a mix of subscriptions, advertising, and product-related commercialization. (1) Subscriptions and in-app purchases: The company offers premium memberships and...
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
74
Positive
Balance Sheet
70
Positive
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.86B | 3.34B | 2.70B | 2.09B | 1.67B |
| Gross Profit | 2.84B | 2.29B | 1.66B | 1.19B | 1.13B |
| EBITDA | 363.09M | 581.69M | 320.01M | -47.03M | -41.23M |
| Net Income | 582.90M | 805.18M | 378.29M | 94.14M | -44.51M |
Balance Sheet | |||||
| Total Assets | 9.29B | 7.05B | 5.77B | 5.00B | 4.75B |
| Cash, Cash Equivalents and Short-Term Investments | 4.87B | 2.96B | 1.31B | 1.34B | 1.23B |
| Total Debt | 1.46B | 318.35M | 90.28M | 38.15M | 48.54M |
| Total Liabilities | 3.65B | 2.01B | 1.65B | 1.29B | 1.23B |
| Stockholders Equity | 5.67B | 5.03B | 4.11B | 3.77B | 3.52B |
Cash Flow | |||||
| Free Cash Flow | 1.21B | 699.48M | 356.82M | 183.58M | -60.98M |
| Operating Cash Flow | 1.26B | 745.81M | 413.23M | 233.99M | -26.32M |
| Investing Cash Flow | 205.67M | 7.17M | -644.63M | -16.77M | -330.42M |
| Financing Cash Flow | 767.65M | -104.07M | -81.16M | -37.03M | -51.24M |
Meitu Technical Analysis
Negative
4.63
Price Trends
4.71
Negative
5.96
Negative
7.59
Negative
Market Momentum
0.03
Negative
49.52
Neutral
29.44
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 4.63 is above the 20-day moving average (MA) of 4.58, below the 50-day MA of 4.71, and below the 200-day MA of 7.59, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 29.44 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$4.06T | 16.70 | 19.90% | 0.75% | 14.96% | 21.57% | |
68 Neutral | HK$212.44B | 11.99 | 25.52% | ― | 12.62% | 22.16% | |
66 Neutral | HK$20.68B | 39.15 | 11.09% | 2.92% | 15.59% | -28.12% | |
65 Neutral | HK$15.58B | -128.76 | 12.13% | 8.13% | 0.06% | 48.33% | |
61 Neutral | HK$1.74B | -161.76 | 6.72% | 4.08% | -25.20% | 33.72% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | HK$1.97B | -2.20 | -4.72% | ― | -23.64% | -42.22% |
* Communication Services Sector Average
HK:1357
Meitu
4.68
-1.14
-19.62%
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Meitu Corporate Events
Meitu Posts Strong Q1 2026 Growth on AI-Driven Apps and Subscriber Momentum
May 6, 2026
Meitu reported strong operating momentum in the first quarter of 2026, with paying subscribers rising 30.2% year on year to more than 17.9 million, driven by faster growth in productivity apps, which surged 52.9% to 2.34 million users, while leisu...
Meitu Sets AGM to Approve 2025 Results, Board Changes and Share Issue Mandate
Apr 27, 2026
Meitu has called its annual general meeting for June 5, 2026 in Hong Kong, where shareholders will review and adopt the audited financial statements for the year ended December 31, 2025, and vote on the re-election of two retiring directors, Mr. C...
Meitu Moves to Update Articles, Boost Dividend Flexibility and Go Paperless
Apr 27, 2026
Meitu, Inc. plans to overhaul its constitutional documents by replacing its existing articles of association with a new set to be voted on at its 2026 annual general meeting. The changes are designed to align with updated Cayman Islands law and Ho...
Meitu Grants 16.5 Million Share Awards to Support Overseas Expansion and Talent Retention
Apr 1, 2026
Meitu has granted 16,456,530 share awards, equivalent to about 0.36% of its issued share capital excluding treasury shares, to employees and core service providers under its share award scheme, with vesting starting in April 2027. The awards, deli...
Meitu Declares Final Cash Dividend for 2025 Financial Year
Mar 27, 2026
Meitu, Inc. has declared a final ordinary cash dividend of HKD 0.05 per share for the financial year ended 31 December 2025, subject to shareholder approval on 5 June 2026. The dividend will be paid in Hong Kong dollars on 26 June 2026 to sharehol...
Meitu Posts Strong 2025 Revenue and Subscriber Growth on AI-Driven Product Expansion
Mar 27, 2026
Meitu reported strong operational growth for 2025, with paying subscribers reaching 16.91 million, including 2.16 million for its fast-growing productivity tools, where international subscribers more than doubled. Monthly active users outside Main...
Meitu Unveils HK$300 Million Share Buy-Back Plan to Signal Confidence and Boost Returns
Mar 27, 2026
Meitu, Inc. has launched a one-year share buy-back plan of up to HK$300 million, to be executed through on-market transactions under its existing shareholder-approved mandate. The programme will be funded from existing cash reserves, with manageme...
Meitu Halts Trading After Online Leak of Unapproved 2025 Results Data
Mar 26, 2026
Meitu, Inc. has moved to address recent online forum posts that referenced unpublished figures for its annual results for the year ended December 31, 2025, information the company classifies as inside information. The company emphasized that its a...
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.