Why is Meitu, Inc. ?
1
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.12%
- Poor long term growth as Net Sales has grown by an annual rate of 26.34% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 100.00
2
With ROE of 10.99%, it has a Very Expensive valuation with a 10.07 Price to Book Value
- Over the past year, while the stock has generated a return of -20.88%, its profits have risen by 49.5% ; the PEG ratio of the company is 2
3
Underperformed the market in the last 1 year
- Even though the market (Hang Seng Hong Kong) has generated returns of 8.25% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -20.88% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Meitu, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Meitu, Inc.
-100.0%
0.67
65.29%
Hang Seng Hong Kong
8.25%
0.41
19.93%
Quality key factors
Factor
Value
Sales Growth (5y)
26.34%
EBIT Growth (5y)
38.18%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.54
Sales to Capital Employed (avg)
0.55
Tax Ratio
1.97%
Dividend Payout Ratio
28.45%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.24%
ROE (avg)
4.12%
Valuation Key Factors 
Factor
Value
P/E Ratio
92
Industry P/E
Price to Book Value
10.07
EV to EBIT
94.57
EV to EBITDA
80.88
EV to Capital Employed
20.59
EV to Sales
14.08
PEG Ratio
1.97
Dividend Yield
0.08%
ROCE (Latest)
21.77%
ROE (Latest)
10.99%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Movement
18What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 1,682.09 MM
ROCE(HY)
Highest at 19.34%
NET SALES(Q)
Highest at HKD 1,956.23 MM
OPERATING PROFIT(Q)
Highest at HKD 449.78 MM
NET PROFIT(Q)
Highest at HKD 448.11 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 47.82%
RAW MATERIAL COST(Y)
Fallen by -23.38% (YoY
DIVIDEND PER SHARE(HY)
Highest at HKD 4.37
OPERATING PROFIT MARGIN(Q)
Highest at 22.99 %
PRE-TAX PROFIT(Q)
Highest at HKD 475.93 MM
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Meitu, Inc.
Operating Cash Flow
Highest at HKD 1,682.09 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (HKD MM)
Net Sales
Highest at HKD 1,956.23 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (HKD MM)
Operating Profit
Highest at HKD 449.78 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (HKD MM)
Net Profit
Highest at HKD 448.11 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (HKD MM)
Operating Profit Margin
Highest at 22.99 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at HKD 475.93 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (HKD MM)
Pre-Tax Profit
At HKD 475.93 MM has Grown at 53.47%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (HKD MM)
Net Profit
At HKD 448.11 MM has Grown at 72.02%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (HKD MM)
Dividend per share
Highest at HKD 4.37
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (HKD)
Dividend Payout Ratio
Highest at 47.82%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -23.38% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales






