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Meitu Inc (HK:1357)
:1357

Meitu (1357) AI Stock Analysis

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HK

Meitu

(OTC:1357)

Rating:70Outperform
Price Target:
HK$9.50
▲(6.86%Upside)
Meitu's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and profitability. Technical indicators show positive momentum, but valuation concerns due to high P/E ratios and overbought technical signals moderate the overall score.

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

Meitu Business Overview & Revenue Model

Company DescriptionMeitu, 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 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.34B2.70B2.09B1.67B1.19B
Gross Profit2.29B1.66B1.19B1.13B793.87M
EBITDA581.69M320.01M-47.03M73.66M-47.66M
Net Income805.18M378.29M94.14M-44.51M-40.97M
Balance Sheet
Total Assets7.05B5.77B5.00B4.75B4.51B
Cash, Cash Equivalents and Short-Term Investments2.96B1.31B1.34B1.23B2.03B
Total Debt318.35M90.28M38.15M48.54M33.78M
Total Liabilities2.01B1.65B1.29B1.23B939.33M
Stockholders Equity5.03B4.11B3.77B3.52B3.55B
Cash Flow
Free Cash Flow699.48M356.82M183.58M-60.98M-262.35M
Operating Cash Flow745.81M413.23M233.99M-26.32M89.21M
Investing Cash Flow7.17M-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 Price8.89
Price Trends
50DMA
6.75
Positive
100DMA
6.03
Positive
200DMA
4.44
Positive
Market Momentum
MACD
0.59
Negative
RSI
69.45
Neutral
STOCH
68.13
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 8.89 is above the 20-day moving average (MA) of 8.07, above the 50-day MA of 6.75, and above the 200-day MA of 4.44, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 69.45 is Neutral, neither overbought nor oversold. The STOCH value of 68.13 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

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$266.20B16.2125.82%9.42%33.34%
75
Outperform
HK$240.93B8.749.84%-1.73%32.35%
72
Outperform
HK$18.34B7.1210.79%8.57%0.43%21.65%
70
Outperform
$40.09B45.2617.66%2.51%21.71%103.69%
65
Neutral
HK$8.30B41.892.01%4.44%-15.71%-80.38%
61
Neutral
$41.26B-0.79-14.19%3.78%2.39%-73.52%
58
Neutral
HK$3.19B-0.40%-19.99%98.97%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1357
Meitu
8.89
6.47
267.05%
HK:2390
Zhihu, Inc. Class A
12.04
3.75
45.24%
HK:1896
Maoyan Entertainment
7.12
-0.17
-2.33%
HK:1024
Kuaishou Technology Class B
63.00
17.25
37.70%
HK:9888
Baidu, Inc. Class A
85.90
-0.50
-0.58%
HK:9898
Weibo Corp Class A
75.10
17.47
30.31%

Meitu Corporate Events

Meitu, Inc. Grants Over 1.2 Million Share Awards to Employees
Jun 30, 2025

Meitu, Inc. has announced the grant of 1,209,702 share awards under its Share Award Scheme, representing approximately 0.03% of the total shares in issue. This initiative aims to align the interests of employees with the company’s growth and development, recognizing their contributions and helping to attract and retain talent. The share awards will vest over a period of 24 months, with no performance targets set for the grantees. This move is expected to support Meitu’s continuous operations and development, enhancing its position in the technology industry.

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. Updates Nomination Committee Terms to Enhance Board Diversity
Jun 27, 2025

Meitu, Inc. has amended and restated the terms of reference for its Nomination Committee, effective from June 27, 2025. The committee is tasked with identifying and recommending candidates for the company’s board of directors, ensuring board diversity, and developing nomination and succession guidelines. The committee will consist of a majority of independent non-executive directors, with at least one director of a different gender, in compliance with Hong Kong Stock Exchange listing rules. This move is expected to enhance the governance and diversity of Meitu’s board, potentially impacting its strategic direction and stakeholder relations positively.

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. Schedules Board Meeting to Discuss Interim Results and Dividend
Jun 18, 2025

Meitu, Inc. has announced that its board of directors will hold a meeting on August 18, 2025, to approve and publish the interim results for the first half of the year ending June 30, 2025. The board will also consider recommending an interim dividend, which could impact the company’s financial strategy and shareholder returns.

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 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.

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.Date of analysis: Jun 27, 2025