DB:M5U

Stock Analysis Report

Executive Summary

Meitu, Inc., an investment holding company, designs, develops, and sells hardware in the People’s Republic of China, Hong Kong, and internationally.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Meitu's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: M5U's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.6%

M5U

14.1%

DE Tech

9.1%

DE Market


1 Year Return

-52.2%

M5U

50.5%

DE Tech

-13.1%

DE Market

Return vs Industry: M5U underperformed the German Tech industry which returned 55.6% over the past year.

Return vs Market: M5U underperformed the German Market which returned -14.3% over the past year.


Shareholder returns

M5UIndustryMarket
7 Day3.6%14.1%9.1%
30 Day-8.9%21.8%-1.0%
90 Day-0.6%0.1%-20.7%
1 Year-52.2%-52.2%51.1%50.5%-10.6%-13.1%
3 Year-87.4%-87.4%61.1%58.7%-10.7%-18.1%
5 Yearn/a68.9%49.0%-10.7%-22.8%

Price Volatility Vs. Market

How volatile is Meitu's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Meitu undervalued compared to its fair value and its price relative to the market?

1.6x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate M5U's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate M5U's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: M5U is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: M5U is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate M5U's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: M5U is overvalued based on its PB Ratio (1.6x) compared to the XE Tech industry average (1.3x).


Next Steps

Future Growth

How is Meitu forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

126.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: M5U is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: M5U is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: M5U's is expected to become profitable in the next 3 years.

Revenue vs Market: M5U's revenue (17.4% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: M5U's revenue (17.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if M5U's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Meitu performed over the past 5 years?

31.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: M5U is currently unprofitable.

Growing Profit Margin: M5U is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: M5U is unprofitable, but has reduced losses over the past 5 years at a rate of 31.3% per year.

Accelerating Growth: Unable to compare M5U's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: M5U is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (3%).


Return on Equity

High ROE: M5U has a negative Return on Equity (-9.21%), as it is currently unprofitable.


Next Steps

Financial Health

How is Meitu's financial position?


Financial Position Analysis

Short Term Liabilities: M5U's short term assets (CN¥3.3B) exceed its short term liabilities (CN¥731.3M).

Long Term Liabilities: M5U's short term assets (CN¥3.3B) exceed its long term liabilities (CN¥149.3M).


Debt to Equity History and Analysis

Debt Level: M5U is debt free.

Reducing Debt: M5U currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: M5U has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: M5U has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -22.9% each year


Next Steps

Dividend

What is Meitu's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate M5U's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate M5U's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if M5U's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if M5U's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of M5U's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average board tenure


CEO

Xinhong Wu (38yo)

no data

Tenure

CN¥1,032,000

Compensation

Mr. Zeyuan Wu serves as Chief Executive Officer of Meitu, Inc. and has been its Executive Director since July 2013. Mr. Wu is Founder of Meitu, Inc. Mr. Wu is responsible for the overall management of Meit ...


CEO Compensation Analysis

Compensation vs Market: Xinhong's total compensation ($USD146.08K) is below average for companies of similar size in the German market ($USD1.31M).

Compensation vs Earnings: Xinhong's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Wen Sheng Cai
Executive Chairmanno dataCN¥629.00k26.13% CN¥201.8m
Zeyuan Wu
CEO & Executive Directorno dataCN¥1.03m13.17% CN¥101.7m
Yihong Guo
Non-Executive Director6.25yrsCN¥315.00kno data
Kai-Fu Lee
Non-Executive Director3.67yrsCN¥315.00kno data
Hao Zhou
Independent Non-Executive Director3.42yrsCN¥315.00kno data
Xiaoling Lai
Independent Non-Executive Director1.25yrsno datano data
Ming Zhang
Independent Non-Executive Director1.25yrsno datano data

3.5yrs

Average Tenure

43yo

Average Age

Experienced Board: M5U's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Meitu, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Meitu, Inc.
  • Ticker: M5U
  • Exchange: DB
  • Founded: 2008
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$6.510b
  • Listing Market Cap: HK$772.256m
  • Shares outstanding: 4.31b
  • Website: https://corp.meitu.com

Number of Employees


Location

  • Meitu, Inc.
  • Building No.6
  • 1–3/F, Block 2
  • Xiamen
  • Fujian Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1357SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2016
M5UDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2016
1357SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2016
1357SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2016
MEIU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2016

Biography

Meitu, Inc., an investment holding company, designs, develops, and sells hardware in the People’s Republic of China, Hong Kong, and internationally. It operates in two segments, Internet Services and Smart Hardware. The company offers Internet services, including online advertising, Internet value added services, and e-commerce services; and M, V, and T series of smartphones under the Meitu brand. It also develops photo and community applications, including BeautyCam, Meipai, MakeupPlus, MeituBeauty, PartyNow, Airbrush, and BeautyPlus, as well as SelfieCity. In addition, the company engages in the provision of information technology services. It offers its products and services directly to end customers, as well as through distributors and retailers. Meitu, Inc. has a strategic cooperation agreement with Xiaomi Corporation. Meitu, Inc. was founded in 2008 and is headquartered in Xiamen, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 01:33
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.