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 14.41%, it has a Very Expensive valuation with a 4.51 Price to Book Value
- Over the past year, while the stock has generated a return of -31.91%, its profits have risen by 46.8% ; the PEG ratio of the company is 0.7
3
Underperformed the market in the last 1 year
- Even though the market (Hang Seng Hong Kong) has generated returns of 8.76% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -31.91% 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.
-31.91%
0.79
61.49%
Hang Seng Hong Kong
8.76%
0.45
19.63%
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)
0.57
Tax Ratio
1.97%
Dividend Payout Ratio
68.20%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.24%
ROE (avg)
4.12%
Valuation Key Factors 
Factor
Value
P/E Ratio
31
Industry P/E
Price to Book Value
4.51
EV to EBIT
30.99
EV to EBITDA
27.16
EV to Capital Employed
8.09
EV to Sales
5.50
PEG Ratio
0.68
Dividend Yield
NA
ROCE (Latest)
26.10%
ROE (Latest)
14.41%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Movement
13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at HKD 2,307 MM
NET SALES(Q)
Highest at HKD 2,230.64 MM
OPERATING PROFIT(Q)
Highest at HKD 550.84 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 111.86%
RAW MATERIAL COST(Y)
Fallen by -17.35% (YoY
CASH AND EQV(HY)
Highest at HKD 5,423.41 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -56.89 %
OPERATING PROFIT MARGIN(Q)
Highest at 24.69 %
-5What is not working for the Company
PRE-TAX PROFIT(Q)
Lowest at HKD -9.77 MM
NET PROFIT(Q)
Lowest at HKD -18.99 MM
Here's what is working for Meitu, Inc.
Operating Cash Flow
Highest at HKD 2,307 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 2,230.64 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 550.84 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (HKD MM)
Operating Profit Margin
Highest at 24.69 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Cash and Eqv
Highest at HKD 5,423.41 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -56.89 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 111.86%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -17.35% (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
Here's what is not working for Meitu, Inc.
Pre-Tax Profit
At HKD -9.77 MM has Fallen at -103.12%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (HKD MM)
Pre-Tax Profit
Lowest at HKD -9.77 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (HKD MM)
Net Profit
Lowest at HKD -18.99 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (HKD MM)
Net Profit
Fallen at -105.82%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (HKD MM)






