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Meitu Inc (HK:1357)
:1357

Meitu (1357) AI Stock Analysis

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HK

Meitu

(OTC:1357)

Rating:76Outperform
Price Target:
HK$8.50
▲(6.92%Upside)
Meitu's overall stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and profitability. Technical analysis supports a positive outlook, though caution is advised due to signs of overbought conditions. The valuation suggests the stock may be overvalued, which tempers the overall score.

Meitu (1357) vs. iShares MSCI Hong Kong ETF (EWH)

Meitu Business Overview & Revenue Model

Company DescriptionMeitu, 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 MoneyMeitu 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
85
Very Positive
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
80
Positive
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
78
Positive
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.34B2.70B2.09B1.67B1.19B
Gross Profit
2.29B1.66B1.19B1.13B793.87M
EBIT
500.22M291.29M-74.06M-76.38M-103.76M
EBITDA
581.69M320.01M-47.03M73.66M-47.66M
Net Income Common Stockholders
805.18M378.29M94.14M-44.51M-40.97M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.96B1.31B1.34B1.23B2.03B
Total Assets
7.05B5.77B5.00B4.75B4.51B
Total Debt
318.35M90.28M38.15M48.54M33.78M
Net Debt
-983.06M-550.35M-908.45M-690.19M-1.12B
Total Liabilities
2.01B1.65B1.29B1.23B939.33M
Stockholders Equity
5.03B4.11B3.77B3.52B3.55B
Cash FlowFree Cash Flow
699.48M356.82M183.58M-60.98M-262.35M
Operating Cash Flow
745.81M413.23M233.99M-26.32M89.21M
Investing Cash Flow
7.17M-644.63M-16.77M-330.42M273.44M
Financing Cash Flow
-104.07M-81.16M-37.03M-51.24M-43.47M

Meitu Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.95
Price Trends
50DMA
5.78
Positive
100DMA
5.37
Positive
200DMA
4.02
Positive
Market Momentum
MACD
0.56
Negative
RSI
72.07
Negative
STOCH
81.96
Negative
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 7.95 is above the 20-day moving average (MA) of 6.80, above the 50-day MA of 5.78, and above the 200-day MA of 4.02, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 72.07 is Negative, neither overbought nor oversold. The STOCH value of 81.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1357.

Meitu Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$258.17B15.7125.82%9.42%33.34%
76
Outperform
$35.48B40.0517.66%2.84%21.71%103.69%
75
Outperform
HK$239.11B8.689.84%-1.73%32.35%
72
Outperform
HK$18.48B7.1710.79%8.51%0.43%21.65%
67
Neutral
HK$9.21B46.512.01%-15.71%-80.38%
61
Neutral
$14.74B5.90-4.02%6.40%2.72%-31.67%
54
Neutral
HK$2.75B-0.40%-19.99%98.97%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1357
Meitu
7.95
5.59
236.29%
HK:9888
Baidu, Inc. Class A
85.40
-5.25
-5.79%
HK:9898
Weibo Corp Class A
75.95
18.27
31.67%
HK:1024
Kuaishou Technology Class B
60.00
8.45
16.39%
HK:1896
Maoyan Entertainment
8.00
-1.04
-11.50%
HK:2390
Zhihu, Inc. Class A
10.50
2.99
39.81%

Meitu Corporate Events

Meitu, Inc. Announces Successful AGM with All Resolutions Passed
Jun 5, 2025

Meitu, Inc. announced the results of its Annual General Meeting held on June 5, 2025, where all proposed resolutions were approved by shareholders. Key resolutions included the re-election of directors, authorization for directors to fix remuneration, re-appointment of PricewaterhouseCoopers as auditor, and approval of a final dividend payment. The meeting also approved mandates for directors to issue new shares and buy back shares, reflecting strong shareholder support for the company’s strategic initiatives.

The most recent analyst rating on (HK:1357) stock is a Buy with a HK$7.80 price target. To see the full list of analyst forecasts on Meitu stock, see the HK:1357 Stock Forecast page.

Meitu Partners with Alibaba for Strategic Growth and Bond Issuance
May 20, 2025

Meitu, Inc. has announced a strategic collaboration with Alibaba.com China Limited, a subsidiary of Alibaba Group, focusing on e-commerce, AI technology, and cloud computing. As part of this partnership, Meitu will issue convertible bonds worth approximately US$250 million to Alibaba, aiming to leverage AI opportunities for long-term growth. This collaboration is expected to strengthen Meitu’s market position and drive future growth, although the bonds will not be listed on any stock exchange.

The most recent analyst rating on (HK:1357) stock is a Buy with a HK$5.10 price target. To see the full list of analyst forecasts on Meitu stock, see the HK:1357 Stock Forecast page.

Meitu, Inc. Announces 2025 Annual General Meeting and Share Issuance Mandate
Apr 25, 2025

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
Apr 1, 2025

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
Mar 27, 2025

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
Mar 18, 2025

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
Mar 18, 2025

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.

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.