Will Meitu (SEHK:1357) Leverage Its Crypto Legacy for a New Chapter in Digital Asset Strategy?

• Earlier this week, Huobi founder Li Lin, alongside leading Asian crypto investors including backers with ties to Meitu, announced the raising of US$1 billion to establish an Ethereum-focused digital asset trust structured through a Nasdaq-listed shell company.
• The initiative's scale and participation from well-known digital asset firms have brought renewed attention to Meitu, given its prior crypto engagement and the sector’s growing momentum in institutional Ethereum exposure.
• We'll explore how Meitu's association with major Ethereum accumulation efforts could reshape perceptions of its investment narrative moving forward.

The latest GPUs need a type of rare earth metal called Neodymium and there are only 36 companies in the world exploring or producing it. Find the list for free.

Meitu Investment Narrative Recap

At its core, the investment case for Meitu relies on sustained international growth in AI-powered imaging, effective monetization of new features, and successful adaptation to evolving consumer trends. The recent news linking Meitu to a major Ethereum-focused digital asset trust is an attention-grabber but doesn’t materially shift the company’s primary short-term catalyst, expanding its core AI imaging and subscription business, or change the most significant near-term risk around heavy reliance on third-party AI models. For now, Meitu’s progress as an imaging and productivity app provider remains the headline story for shareholders.

Among Meitu’s recent corporate actions, the company’s addition to the FTSE All-World Index stands out, as it underpins a steady uptick in global visibility and liquidity. This development is more immediately relevant to the key business catalyst of growing international revenue and user engagement, rather than to any crypto-related headlines. In contrast, investors should also be aware that...

Read the full narrative on Meitu (it's free!)

Meitu's outlook anticipates CN¥6.5 billion in revenue and CN¥1.6 billion in earnings by 2028. This scenario assumes a 22.3% annual revenue growth rate and an earnings increase of approximately CN¥701 million from current earnings of CN¥898.8 million.

Uncover how Meitu's forecasts yield a HK$13.04 fair value, a 55% upside to its current price.

Exploring Other Perspectives

Three members of the Simply Wall St Community put Meitu’s fair value between HK$7.20 and HK$15.41, reflecting wide-ranging growth expectations. While revenue and user expansion has accelerated, the risk of dependence on external AI tech could challenge future margins. Explore how your assessment measures up to these varied outlooks.

Explore 3 other fair value estimates on Meitu - why the stock might be worth as much as 83% more than the current price!

Build Your Own Meitu Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Meitu research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Meitu research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Meitu's overall financial health at a glance.

Seeking Other Investments?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• AI is about to change healthcare. These 33 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com