Meitu (1357) AI Stock Analysis

• Market Cap: $52.97B
• Dividend Yield: 1.36%
• Average Volume (3M): 95.67M
• Price to Earnings (P/E): 59.8
• Beta (1Y): 1.59
• Revenue Growth: 21.71%
• EPS Growth: 103.69%
• Country: HK
• Employees: 2,416
• Sector: Communication Services
• Sector Strength: 75
• Industry: Internet Content & Information
• EPS (TTM): 0.12
• Shares Outstanding: 4,566,179,000
• 10 Day Avg. Volume: 134,848,806
• 30 Day Avg. Volume: 95,667,475
• PEG Ratio: 0.63
• Price to Book (P/B): 8.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 59.28
• 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: $13.27
• Price Target Upside: 14.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: HK$13.50 ▲(16.38%Upside)

Meitu's strong financial performance and bullish technical indicators significantly support the stock score. However, the high P/E ratio raises potential concerns about overvaluation, which slightly reduces the overall score.

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, 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 Money

Meitu generates revenue through a combination of advertising, premium subscriptions, and e-commerce. Its primary revenue stream comes from digital advertising on its platforms, where brands and marketers leverage Meitu's large user base for targeted advertising campaigns. Additionally, Meitu offers premium features and services within its apps, which users can access through subscription models, contributing to a steady stream of recurring income. The company also capitalizes on its extensive user base by engaging in e-commerce activities, such as selling beauty products and accessories directly through its apps. Significant partnerships with technology and beauty brands further bolster Meitu's earnings, enabling the company to expand its market reach and enhance its product offerings.

Meitu Financial Statement Overview

Summary

Meitu exhibits strong financial performance with impressive revenue growth, high profitability margins, and a robust balance sheet. The low debt-to-equity ratio indicates financial stability, and the company maintains effective cash flow generation, supporting strategic initiatives.

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
EBITDA	581.69M	320.01M	-47.03M	73.66M	-47.66M
Net Income	805.18M	378.29M	94.14M	-44.51M	-40.97M
Balance Sheet
Total Assets	7.05B	5.77B	5.00B	4.75B	4.51B
Cash, Cash Equivalents and Short-Term Investments	2.96B	1.31B	1.34B	1.23B	2.03B
Total Debt	318.35M	90.28M	38.15M	48.54M	33.78M
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: 11.60
• 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 11.6 is above the 20-day moving average (MA) of 10.45, above the 50-day MA of 8.65, and above the 200-day MA of 5.20, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 65.87 is Neutral, neither overbought nor oversold. The STOCH value of 68.60 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
9888	78 Outperform	HK$239.81B	8.70	9.84%	―	-1.73%	32.35%
1024	78 Outperform	HK$322.36B	19.54	25.82%	―	9.42%	33.34%
1357	76 Outperform	$52.97B	59.79	17.66%	1.36%	21.71%	103.69%
9898	74 Outperform	HK$18.49B	7.18	10.79%	8.50%	0.43%	21.65%
Sector *	61 Neutral	$42.21B	-3.57	-11.12%	4.05%	2.99%	-33.83%
1896	58 Neutral	HK$8.87B	44.74	2.01%	4.16%	-15.71%	-80.38%
2390	58 Neutral	HK$2.98B	―	-0.40%	―	-19.99%	98.97%

Meitu Corporate Events

Meitu, Inc. Announces Strong Profit Growth for First Half of 2025

Meitu, Inc. has announced a positive profit alert, expecting a significant year-over-year growth in adjusted net profit for the first half of 2025, driven by rapid revenue growth in its core business. The increase in paying subscribers and high gross profit margins have expanded the company’s profitability, despite rising operating expenses. The actual interim results, yet to be finalized, may differ from the preliminary figures, and stakeholders are advised to exercise caution.

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. Grants Over 1.2 Million Share Awards to Employees

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

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

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

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

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.