Meitu (1357) AI Stock Analysis

• Market Cap: HK$26.57B
• Dividend Yield: 0.62%
• Average Volume (3M): 42.92M
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.38
• Revenue Growth: 21.71%
• EPS Growth: 103.69%
• Country: HK
• Employees: 2,416
• Sector: Communication Services
• Sector Strength: 83
• Industry: Internet Content & Information
• EPS (TTM): 0.19
• Shares Outstanding: 4,565,662,600
• 10 Day Avg. Volume: 50,602,396
• 30 Day Avg. Volume: 42,924,992
• PEG Ratio: 0.35
• Price to Book (P/B): 4.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.77
• 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$6.97
• Price Target Upside: 18.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Meitu's strong financial performance, characterized by revenue growth and high profitability, is a significant strength, contributing to a robust overall score. Technical analysis indicates mixed momentum, with short-term bearish trends but potential long-term growth. The fair valuation suggests reasonable growth expectations, with a modest dividend yield adding to its attractiveness. Overall, the stock is well-positioned in the competitive Internet Content & Information industry.

Meitu Business Overview & Revenue Model

Company Description

Meitu, Inc. (1357) is a leading technology company based in China, specializing in the development of image and video processing software. The company is renowned for its mobile applications that offer a range of photo editing and beauty enhancement features, which have gained significant popularity among users worldwide. Meitu primarily operates in the technology and software sector, continuously innovating to enhance user experience with its cutting-edge applications.

How the Company Makes Money

Meitu generates revenue through a combination of in-app purchases, advertising, and partnerships. A significant portion of its income comes from users purchasing additional features and premium content within its mobile applications. The company also leverages its vast user base by offering advertising services, allowing brands to reach a targeted audience through Meitu's platforms. Additionally, Meitu engages in strategic partnerships with other technology companies and brands to further monetize its services and expand its market reach.

Meitu Financial Statement Overview

Summary

Meitu demonstrates strong financial performance with impressive revenue growth, high profitability margins, and a robust balance sheet. The company maintains low leverage, ensuring financial stability, while cash flow generation supports its strategic initiatives. The positive trajectory across key financial metrics positions Meitu well for continued success.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.34B	2.70B	2.09B	1.67B	1.19B
	Gross Profit
2.29B	1.66B	1.19B	1.13B	793.87M
	EBIT
500.22M	291.29M	-74.06M	-76.38M	-103.76M
	EBITDA
581.69M	320.01M	-47.03M	73.66M	-47.66M
	Net Income Common Stockholders
805.18M	378.29M	94.14M	-44.51M	-40.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.96B	1.31B	1.34B	1.23B	2.03B
	Total Assets
7.05B	5.77B	5.00B	4.75B	4.51B
	Total Debt
318.35M	90.28M	38.15M	48.54M	33.78M
	Net Debt
-983.06M	-550.35M	-908.45M	-690.19M	-1.12B
	Total Liabilities
2.01B	1.65B	1.29B	1.23B	939.33M
	Stockholders Equity
5.03B	4.11B	3.77B	3.52B	3.55B
Cash Flow		Free Cash Flow
699.48M	356.82M	183.58M	-60.98M	-262.35M
	Operating Cash Flow
745.81M	413.23M	233.99M	-26.32M	89.21M
	Investing Cash Flow
7.17M	-644.63M	-16.77M	-330.42M	273.44M
	Financing Cash Flow
-104.07M	-81.16M	-37.03M	-51.24M	-43.47M

Meitu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1357, the sentiment is Positive. The current price of 5.9 is above the 20-day moving average (MA) of 5.32, above the 50-day MA of 5.36, and above the 200-day MA of 3.61, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 64.53 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1357.

Meitu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9988	81 Outperform	HK$2.28T	16.02	13.02%	0.82%	3.92%	27.80%
1810	76 Outperform	HK$1.36T	53.35	13.43%	―	32.62%	32.85%
3888	75 Outperform	$53.47B	31.37	7.09%	0.37%	18.66%	219.56%
1357	72 Outperform	HK$26.57B	30.00	17.66%	0.62%	21.71%	103.69%
3690	70 Outperform	$821.15B	21.12	22.27%	―	19.90%	157.52%
Sector *	60 Neutral	$14.09B	6.90	-3.35%	3.68%	2.44%	-36.27%
1023	56 Neutral	HK$481.35M	5.10	-1.08%	12.00%	-4.68%	-112.44%

Meitu Corporate Events

Meitu, Inc. Announces 2025 Annual General Meeting and Share Issuance Mandate

Meitu, Inc. has announced its upcoming annual general meeting (AGM) scheduled for June 5, 2025, in Hong Kong. Key agenda items include the adoption of the company’s audited financial statements for 2024, the re-election of three directors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, the company seeks shareholder approval for a mandate to issue new shares or securities, potentially impacting its capital structure and market operations.

Meitu, Inc. Grants Over 13 Million Share Awards to Boost Talent Retention

Meitu, Inc. announced the grant of 13,890,324 Share Awards under its Share Award Scheme, representing approximately 0.3% of the total shares in issue. The awards are distributed among employees and service providers, with varying vesting schedules and some linked to performance targets, including a profit performance target of RMB1.1 billion for 2026. This initiative is part of Meitu’s strategy to incentivize and retain talent, potentially impacting its operational efficiency and market position.

Meitu Achieves Key Performance Targets in Zcool Acquisition

Meitu, Inc. announced an update on the performance targets related to its acquisition of Zcool Network Group. The company achieved a Total Completion Ratio of 96.75%, surpassing the required minimum of 60%, which allows them to proceed with paying 96.75% of the second tranche cash consideration to the Founder Holdcos. This acquisition has bolstered Meitu’s photo and video model ecosystem, enhancing the quality and efficiency of content generation and expanding the exposure of its products in China’s design field.

Meitu, Inc. Declares Final Dividend for 2024

Meitu, Inc. has announced a final ordinary cash dividend of HKD 0.0552 per share for the financial year ending December 31, 2024. The dividend, subject to shareholder approval on June 5, 2025, will be paid on June 26, 2025, with a record date of June 13, 2025. This announcement reflects the company’s commitment to returning value to its shareholders, potentially strengthening its market position and investor relations.

Meitu, Inc. Reports Strong Financial Growth and Global Expansion in 2024

Meitu, Inc. announced a significant increase in its financial performance for the year ended December 31, 2024, with net profit and adjusted net profit rising by 112.8% and 59.2% year-on-year, respectively. The company’s growth was driven by its high-margin photo, video, and design products, alongside a successful globalization strategy that boosted its monthly active users by 6.7% year-on-year. The company also expanded its offerings in the global productivity tools market, with AI-driven products like DesignKit doubling revenue year-on-year. These developments indicate Meitu’s strong operational leverage and its ability to capitalize on emerging market opportunities.

Meitu’s Shareholder Sells Stake; CEO Reaffirms Confidence

Meitu, Inc. announced that a substantial shareholder, Mr. Cai Wensheng, has sold 128 million shares, representing 2.81% of the company’s issued share capital. Despite this sale, the company’s founder, chairman, and CEO, Mr. Wu Zeyuan, expressed confidence in Meitu’s future and plans to increase his shareholdings after the blackout period ends in March 2025.