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Meitu
(1357)
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Rating:71Outperform
Price Target:
HK$4.50
▲(0.90% Upside)
Action:Upgraded
Date:08/29/26
The score is driven primarily by solid financial performance (strong growth and improved cash flow with high gross margins), reinforced by a positive earnings call featuring strong subscriber/profit momentum and a share buyback. The main constraints are 2025 margin compression and higher leverage versus prior years, plus only mixed technicals (below the 200-day average with neutral momentum) and a mid-range valuation (P/E ~22.8 with ~2% yield).
Positive Factors
Strong core revenue growth
Rapid growth in the core photo, video and design portfolio indicates continuing product adoption and expanding monetization across Meitu’s ecosystem. Sustained demand gives the company a stronger base for investing in AI features, creator tools and international expansion over the next several quarters.
Negative Factors
Rising costs and margin compression
Costs are growing faster than revenue in important areas such as revenue sharing, computing and cloud services, while gross margin has narrowed. If investment and infrastructure expenses continue to outpace monetization, operating leverage may weaken and constrain the durability of profit growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong core revenue growth
Rapid growth in the core photo, video and design portfolio indicates continuing product adoption and expanding monetization across Meitu’s ecosystem. Sustained demand gives the company a stronger base for investing in AI features, creator tools and international expansion over the next several quarters.
Read all positive factors
Meitu (1357) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$19.45B
Dividend Yield2.78%
Average Volume (3M)71.14M
Price to Earnings (P/E)19.9
Beta (1Y)1.82
Revenue Growth24.38%
EPS Growth-6.27%
CountryHK
Employees2,103
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.12
Shares Outstanding4,586,179,000
10 Day Avg. Volume91,956,992
30 Day Avg. Volume71,137,780
Financial Highlights & Ratios
PEG Ratio-3.54
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$8.01Price Target Upside79.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.28
Revenue Forecast (FY)HK$4.82B
Meitu Business Overview & Revenue Model
Company Description
Meitu, Inc., an investment holding company, engages in the development and provision of products that streamline the production of photo, video, and design with other AI-powered products in Mainland China and internationally. Its product portfolio...
How the Company Makes Money
Meitu primarily makes money through (1) subscription-based paid memberships for its software products, and (2) online advertising and marketing services across its app ecosystem, with additional contributions from other internet-related services.
...
Meitu Earnings Call Summary
Earnings Call Date:Mar 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 01, 2027
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
4.46
Price Trends
4.35
Negative
4.40
Negative
5.44
Negative
Market Momentum
0.05
Positive
42.41
Neutral
22.18
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 4.46 is below the 20-day moving average (MA) of 4.49, above the 50-day MA of 4.35, and below the 200-day MA of 5.44, indicating a bearish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 42.41 is Neutral, neither overbought nor oversold. The STOCH value of 22.18 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$3.84T | 14.15 | 20.47% | 1.24% | 15.97% | 18.45% | |
71 Outperform | HK$19.45B | 19.93 | 13.77% | 2.78% | 24.38% | -6.27% | |
69 Neutral | HK$12.82B | 4.93 | 8.15% | 9.22% | 1.85% | -14.40% | |
66 Neutral | HK$138.25B | 7.35 | 19.76% | 3.68% | 11.31% | 0.14% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | HK$1.77B | 9.93 | 2.82% | 5.15% | -23.74% | -54.08% | |
50 Neutral | HK$1.43B | -2.05 | -7.89% | ― | -13.13% | -332.19% |
* Communication Services Sector Average
HK:1357
Meitu
4.21
-5.21
-55.34%
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Meitu Corporate Events
Meitu Declares Interim Cash Dividend for First Half of 2026
Aug 26, 2026
Meitu, Inc. has declared an interim ordinary cash dividend of HKD 0.067 per share for the six months ended 30 June 2026, payable in Hong Kong dollars. The decision underscores the company’s willingness to return cash to shareholders on a sem...
Meitu Revamps Board Committee Roles to Strengthen Corporate Governance
Aug 26, 2026
Meitu announced an updated list of its board of directors and clarified the roles and functions of each member across key governance committees. The company designated chairman and CEO Wu Zeyuan as an executive director, with independent non-execu...
Meitu Boosts AI-Driven Subscriptions and Profit on Global Expansion
Aug 26, 2026
Meitu reported solid interim results for the six months ended June 30, 2026, driven by expansion of its AI-powered productivity and visual creation applications. Total paying subscribers surpassed 18.44 million, with growth outside Mainland China ...
Meitu Posts Strong H1 2026 Growth on AI-Driven Apps and Global Expansion
Jul 30, 2026
Meitu reported robust operating metrics for the first half of 2026, with monthly active users reaching about 282 million and paying subscribers surpassing 18.44 million, driven by strong traction in productivity apps and stable leisure app usage. ...
Meitu Sets August Board Meeting to Approve Interim Results and Consider Dividend
Jul 15, 2026
Meitu, Inc. has scheduled a board meeting for August 26, 2026, to review and approve the group’s interim results for the six months ended June 30, 2026 and to authorize their publication. The meeting will also consider whether to recommend t...
Meitu Founder Wu Zeyuan Boosts Stake in Hong Kong–Listed Tech Firm
Jul 3, 2026
Meitu’s founder, chairman and chief executive officer, Wu Zeyuan, has increased his stake in the Hong Kong–listed tech firm with an on‑market purchase of 1.6 million shares at an average price of HK$4.023. Following the transacti...
Meitu Grants New Employee Share Awards Under Incentive Scheme
Jul 1, 2026
Meitu has granted 1,650,343 share awards, equal to about 0.036% of its issued share capital excluding treasury shares, to employees under its share award scheme, with vesting spread over 24 to 48 months. The awards, each giving a right to one shar...
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.