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    Meitu (SEHK:1357) Stock Retreat Deepens Despite Stronger AI Earnings

    Simply Wall St·09/25/2026 10:29:39
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    Meitu stock has been drifting lower for weeks, yet the latest half-year figures tell a very different story for investors. The core message is simple. The app maker is generating more earnings on a bigger top line, with H1 2026 revenue of C¥2,212.8m and net income from ongoing operations of C¥619.5m. Basic earnings per share of C¥0.136 indicates that profitability, not just user buzz, is doing the heavy lifting. Today’s price reaction appears to be driven more by sentiment than by the underlying income statement, which now warrants closer inspection.

    Is Meitu stock genuinely trading at a discount to its cash flows, or is the lower share price simply catching up with the one off boost to reported earnings? Compare the implied upside and earnings quality in the valuation analysis for Meitu

    H1 2026 Earnings Summary

    • Revenue (H1 2026 vs. H1 2025): C¥2,212.8m vs. C¥1,812.9m (up about 22.1%)
    • Net Income from Ongoing Operations (H1 2026 vs. H1 2025): C¥619.5m vs. C¥459.8m (up about 34.7%)
    • Basic EPS (H1 2026 vs. H1 2025): C¥0.136 vs. C¥0.102 (up about 34.4%)
    • Trailing 12M Net Income Excluding Extra Items (H1 2026 TTM vs. H2 2025 TTM): C¥892.2m vs. C¥732.6m (up about 21.8%)

    Prefer clean charts instead of scrolling through dense earnings tables? View Meitu’s full financial picture, including a visual breakdown of its valuation, in the company report for Meitu.

    SEHK:1357 Trailing 12-Month Earnings & Revenue History as at Sep 2026
    SEHK:1357 Trailing 12-Month Earnings & Revenue History as at Sep 2026

    Meitu’s AI Subscription Story Meets Key H1 Tests

    Bulls argue Meitu is turning AI photo and video tools into a repeat subscription engine rather than a one hit app shop. The first half numbers mostly back that up. Revenue from continuing operations reached C¥2,212.8m while net income from ongoing operations came in at C¥619.5m, and management attributes this mainly to AI productivity apps driving higher paid conversion and bigger Annual Recurring Revenue. That ties directly to the thesis that Photo, Video and Design subscriptions can support a more reliable earnings base.

    RoboNeo is still early, but the description of over 1 million monthly active users with limited marketing gives some real traction behind the idea of a future agent style revenue stream. The 39.5% rise in adjusted profit cited for 1H26, alongside an interim dividend of HK$0.067 per share, also suggests current AI products are already supporting healthier cash generation.

    Compare how Meitu’s AI driven subscription gains and higher adjusted profit stack up against institutional expectations. Reveal whether analysts see more upside or are trimming their outlook in the consensus price target analysis for Meitu.

    Meitu Bears Question Durability Of AI Momentum

    Bearish investors argue Meitu is leaning too hard on a small group of viral AI tools and that users may treat products like RoboNeo and MVLAND as short lived novelties. The H1 2026 print pushes back only partially. Revenue and adjusted profit tied to AI productivity apps look healthy, and management is confident enough to pay an interim dividend of HK$0.067, yet the share price has fallen about 14% over 30 days and about 7.7% over 7 days. That weak reaction after a 39.5% adjusted profit increase suggests the market is still questioning how repeatable this earnings mix is. Monetization milestones that bears focus on, such as clear evidence of users moving from low priced passes to higher value, long term RoboNeo or MVLAND subscriptions, are not spelled out. International expansion is highlighted, but profitability by region is not, so concerns about rising overseas costs also remain untested.

    After a 39.5% adjusted profit jump and a 14% share price decline in 30 days, are Meitu’s AI driven earnings already leaning on one off boosts, or is that just the start of a deeper pattern that investors are missing? Scan the forensic risk analysis for Meitu which shows 1 important warning sign

    Stay Ahead Of Your Next Move

    Meitu’s mix of higher H1 2026 earnings and a weaker recent share price reaction makes it a candidate many investors may want to track closely. Register for free with Simply Wall St and add Meitu to a Watchlist so you can watch how the price lines up against fair value and decide when conditions match your preferred entry point. After you build a position, keep your decisions grounded in data by managing everything through the Portfolio Command Center, which highlights only the key changes that could matter for your thesis. Round that out by tapping into thousands of perspectives through the Community so you can spot potential catalysts and risks early and stay a step ahead of the market.

    Seeking Alternatives Beyond Meitu?

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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.