Assessing Meitu (SEHK:1357) Valuation After 2025 Results And Rapid AI Subscriber Growth

Meitu (SEHK:1357) drew investor attention after releasing its 2025 full year results, reporting sales of CN¥3,858.74 million and net income of CN¥582.9 million, alongside its continued focus on Productivity and Globalisation.

See our latest analysis for Meitu.

Despite the strong focus on AI powered products and international subscriber growth, Meitu’s recent share price performance has been weak, with a 30 day share price return of 19.10% and a year to date share price return of 41.86%. However, the 3 year total shareholder return of 96.47% and 5 year total shareholder return of 76.06% point to a much stronger longer term record.

If you are comparing Meitu’s recent pullback with other opportunities in AI focused names, it may be worth scanning a broader set of 67 profitable AI stocks that aren't just burning cash

With revenue at CN¥3,858.74 million, net income at CN¥582.9 million and the share price well below analyst targets, the key question is whether Meitu’s AI and global growth story represents a buying opportunity or is already fully reflected in the current valuation.

Most Popular Narrative: 66.2% Undervalued

Meitu's most followed narrative sets a fair value of HK$12.77 against a last close of HK$4.32, framing a large valuation gap that hinges on growth and earnings leverage.

Successful integration of advanced AI features (AI Wardrobe, AI Flash, and RoboNeo) has significantly improved user engagement and willingness to pay, demonstrated by a 45.2% year on year revenue growth in the core Photo, Video, and Design (PVD) segment and a rising subscription rate, pointing to higher future ARPU and improved gross margins.

Read the complete narrative.

Curious what sits behind that projected jump in profitability and value? The narrative leans heavily on rapid revenue expansion, firmer margins and a richer earnings multiple.

Result: Fair Value of HK$12.77 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on Meitu holding its ground against larger AI rivals and managing rising R&D and marketing costs, which could pressure margins if monetization disappoints.

Find out about the key risks to this Meitu narrative.

Another Way to Look at Valuation

The DCF view suggests Meitu trades at a 66.9% discount to an estimated fair value of HK$13.06. The current HK$4.32 price also sits below the HK$12.78 analyst target. That kind of gap can signal mispricing, but it can also reflect real execution risks, so which side do you think is closer to reality?

Look into how the SWS DCF model arrives at its fair value.

Next Steps

With sentiment clearly focused on Meitu’s potential rewards, it makes sense to look at the data yourself and decide quickly where you stand. To see what the market is currently optimistic about, review the 2 key rewards

Looking for more investment ideas?

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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.

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