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 moderate growth potential.

Risks

  • Meitu has significant price volatility in the past 3 months.

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

1.5%

SEHK:1357

0.7%

HK Tech

1.2%

HK Market


1 Year Return

-58.7%

SEHK:1357

-34.9%

HK Tech

-9.5%

HK Market

1357 underperformed the Tech industry which returned -34.9% over the past year.

1357 underperformed the Market in Hong Kong which returned -9.5% over the past year.


Share holder returns

1357IndustryMarket
7 Day1.5%0.7%1.2%
30 Day-5.7%-3.4%-8.0%
90 Day-23.8%-6.8%-5.9%
1 Year-58.7%-58.7%-34.4%-34.9%-6.2%-9.5%
3 Yearn/a-2.0%-10.9%14.5%3.1%
5 Yearn/a-36.6%-48.6%8.5%-9.5%

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 based on future cash flows and its price relative to the stock market?

1.96x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Meitu to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Meitu to establish if it is available at substantial discount.


Price Based on Earnings

Meitu is loss making, we can't compare its value to the HK Tech industry average.

Meitu is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Meitu, we can't assess if its growth is good value.


Price Based on Value of Assets

Meitu is overvalued based on assets compared to the HK Tech industry average.


Next Steps

Future Growth

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

92.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Meitu's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Meitu's earnings are expected to grow significantly at over 20% yearly.

Meitu's revenues are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Meitu's earnings growth is expected to exceed the Hong Kong market average.

Meitu's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Meitu is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Meitu performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Meitu does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Meitu's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Meitu's 1-year growth to the HK Tech industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Meitu has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Meitu has efficiently used its assets last year compared to the HK Tech industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Meitu improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Meitu's financial position?


Financial Position Analysis

Meitu is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Meitu's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Meitu's level of debt (0.3%) compared to net worth is satisfactory (less than 40%).

Meitu had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 414.6x 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.

Meitu has sufficient cash runway for 1.2 years based on current free cash flow.

Meitu has sufficient cash runway for 1.2 years if free cash flow continues to grow at historical rates of 22.5% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Meitu's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Meitu's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Meitu has not reported any payouts.

Unable to verify if Meitu's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Meitu has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Meitu's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.


Next Steps

Management

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

2.9yrs

Average board tenure


CEO

Xinhong Wu (38yo)

0.0yrs

Tenure

CN¥2,444,000

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

Xinhong's remuneration is about average for companies of similar size in Hong Kong.

Xinhong's compensation has increased whilst company is loss making.


Board Age and Tenure

2.9yrs

Average Tenure

43yo

Average Age

The average tenure for the Meitu board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


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
BuyCN¥14,258,48402 Oct 18
Jiarong Chen
EntityIndividual
Shares2,250,000
Max PriceCN¥6.34

Ownership Breakdown


Management Team

  • Frank Kan Fu (49yo)

    Managing Director of International Business

    • Tenure: 0.0yrs
  • Wen Sheng Cai (49yo)

    Executive Chairman

    • Tenure: 0.0yrs
    • Compensation: CN¥629.00k
  • Gary Ngan (36yo)

    CFO & Joint Company Secretary

    • Tenure: 0.0yrs
  • Arthur Law (35yo)

    General Counsel

    • Tenure: 1.9yrs
  • Xinhong Wu (38yo)

    CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: CN¥2.44m
  • Wei Zhang (33yo)

    Chief Technology Officer

    • Tenure: 0.0yrs
  • Yongli Ruan (33yo)

    Senior Vice President of Technology

    • Tenure: 0.0yrs
  • Jie Chen (32yo)

    Senior Vice President of Product Development

    • Tenure: 0.0yrs
  • Zhiping Zeng (41yo)

    Senior Vice President of Human Resources

    • Tenure: 0.0yrs
  • Yu Cheng (41yo)

    Chief Operating Officer

    • Tenure: 1.8yrs

Board Members

  • Young Guo (55yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: CN¥315.00k
  • Kai-Fu Lee (58yo)

    Non-Executive Director

    • Tenure: 3.0yrs
    • Compensation: CN¥315.00k
  • Hao Zhou (43yo)

    Independent Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: CN¥315.00k
  • Chris Lai (43yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Wen Sheng Cai (49yo)

    Executive Chairman

    • Tenure: 0.0yrs
    • Compensation: CN¥629.00k
  • Xinhong Wu (38yo)

    CEO & Executive Director

    • Tenure: 0.0yrs
    • Compensation: CN¥2.44m
  • Wen Chu Zhang (41yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs

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$8.702b
  • Shares outstanding: 4.22b
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 12:56
End of Day Share Price2019/08/20 00:00
Earnings2018/12/31
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.