SEHK:1357

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

Fundamentals

Flawless balance sheet with weak fundamentals.


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


Market Performance


7 Day Return

-2.3%

1357

-2.6%

HK Tech

0.9%

HK Market


1 Year Return

-63.0%

1357

-22.7%

HK Tech

0.6%

HK Market

Return vs Industry: 1357 underperformed the Hong Kong Tech industry which returned -22.7% over the past year.

Return vs Market: 1357 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

1357IndustryMarket
7 Day-2.3%-2.6%0.9%
30 Day-6.0%-4.8%0.4%
90 Day-18.5%-8.1%-5.5%
1 Year-63.0%-63.0%-22.0%-22.7%4.2%0.6%
3 Yearn/a-3.5%-12.1%15.5%3.9%
5 Yearn/a-32.8%-46.1%19.9%-0.1%

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

Valuation

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

1.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 1357's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 1357's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1357 is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: 1357 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 1357's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1357 is overvalued based on its PB Ratio (1.9x) compared to the HK Tech industry average (1x).


Next Steps

Future Growth

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

94.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1357 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1357 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1357 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1357's revenue is expected to decline over the next 3 years (-17.7% per year).

High Growth Revenue: 1357's revenue is forecast to decline over the next 3 years (-17.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 1357'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?

28.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1357 is unprofitable, but has reduced losses over the past 5 years at a rate of 28.4% per year.

Accelerating Growth: Unable to compare 1357's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1357 is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (4%).


Return on Equity

High ROE: 1357 has a negative Return on Equity (-30.37%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1357 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1357 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Meitu's financial position?


Financial Position Analysis

Short Term Liabilities: 1357's short term assets (CN¥3.4B) exceeds its short term liabilities (CN¥709.4M)

Long Term Liabilities: 1357's short term assets (3.4B) exceeds its long term liabilities (117.9M)


Debt to Equity History and Analysis

Debt Level: 1357's debt to equity ratio (0.3%) is considered satisfactory

Reducing Debt: 1357 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: 1357 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1357's debt is covered by short term assets (assets are 343.340000x debt).


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: 1357 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 1357 has sufficient cash runway for 1.378584 years if free cash flow continues to reduce at historical rates of -42.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage3.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1357's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1357's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1357's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1357'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 1357's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

  • Explore strong dividend paying companies in the Tech industry.

Management

What is the CEO of Meitu's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average board tenure


CEO

Xinhong Wu (38yo)

0yrs

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: Insufficient data to establish whether Xinhong's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Board Age and Tenure

3.0yrs

Average Tenure

43yo

Average Age

Experienced Board: 1357's board of directors are considered experienced (3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCN¥16,535,51705 Dec 18
Wen Sheng Cai
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares5,000,000
Max PriceCN¥3.31

Ownership Breakdown


Management Team

  • Frank Kan Fu (49yo)

    Managing Director of International Business

    • Tenure: 0yrs
  • Wen Sheng Cai (49yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CN¥629.00k
  • Gary Ngan (36yo)

    CFO & Joint Company Secretary

    • Tenure: 0yrs
  • Arthur Law (35yo)

    General Counsel

    • Tenure: 2.1yrs
  • Xinhong Wu (38yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥1.03m
  • Wei Zhang (33yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Yongli Ruan (33yo)

    Senior Vice President of Technology

    • Tenure: 0yrs
  • Jie Chen (32yo)

    Senior Vice President of Product Development

    • Tenure: 0yrs
  • Zhiping Zeng (41yo)

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Yu Cheng (41yo)

    Chief Operating Officer

    • Tenure: 1.9yrs

Board Members

  • Young Guo (55yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: CN¥315.00k
  • Kai-Fu Lee (58yo)

    Non-Executive Director

    • Tenure: 3.2yrs
    • Compensation: CN¥315.00k
  • Hao Zhou (43yo)

    Independent Non-Executive Director

    • Tenure: 2.9yrs
    • Compensation: CN¥315.00k
  • Chris Lai (43yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Wen Sheng Cai (49yo)

    Executive Chairman

    • Tenure: 0yrs
    • Compensation: CN¥629.00k
  • Xinhong Wu (38yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥1.03m
  • Wen Chu Zhang (41yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Meitu, Inc.
  • Ticker: 1357
  • Exchange: SEHK
  • Founded: 2008
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$7.245b
  • Shares outstanding: 4.21b
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:58
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.