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    Meitu (SEHK:1357) Posts Higher Half Year Profit And Dividend, Is It Still Undervalued?

    Simply Wall St·09/07/2026 13:17:54
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    Meitu (SEHK:1357) has drawn fresh attention after reporting half year 2026 results, with higher sales and net income than a year earlier, alongside an interim cash dividend that returns capital to shareholders.

    Meitu’s latest half year update comes after a tough stretch for the stock, with the share price down about 35% year to date and the 1 year total shareholder return down about 47%, even though the 3 year and 5 year total shareholder returns remain strongly positive.

    Compare Meitu’s latest move with other fast growing stocks by scanning the 256 high quality undervalued stocks that pair stronger balance sheets with solid cash flows.

    Bulls point to Meitu’s higher half year earnings, dividend and long term share gains. Bears focus on the steep 1 year decline. Which side does the current valuation and cash generation support next?

    Most Popular Narrative: 46.2% Undervalued

    Meitu's most followed valuation story points to a fair value of HK$8.97 compared with the last close at HK$4.82. That gap hinges on strong assumptions about growth, margins and future earnings quality.

    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. Read the complete narrative.

    Want to see why this fair value is so far above the current HK$ price? The narrative leans on rapid revenue gains, rising profitability and a richer earnings multiple. Curious which specific growth and margin paths have to play out for Meitu to reach that level?

    Result: Fair Value of HK$8.97 (UNDERVALUED)

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

    However, the Meitu story could look very different if competition in AI imaging intensifies, or if overseas monetisation remains weaker than analysts expect.

    Find out about the key risks to this Meitu narrative.

    Another View on Meitu Using P/E Ratios

    The fair value story around Meitu looks generous, yet the P/E picture is more cautious. The stock trades on a 20.9x P/E, which is above the 16.5x fair ratio and higher than the 14.2x peer average, even though it is roughly in line with the 21.2x Asian Interactive Media and Services sector. That mix points to valuation risk if expectations ease or peers rerate.

    For a closer look at how this ratio could shift over time, including where the fair ratio comes from, check the valuation breakdown next. See what the numbers say about this price — find out in our valuation breakdown.

    SEHK:1357 P/E Ratio as at Sep 2026
    SEHK:1357 P/E Ratio as at Sep 2026

    Next Steps

    With mixed signals around Meitu, you may want to review the data directly and act promptly to form your own view. Start by weighing the 2 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond Meitu?

    If Meitu has your attention, do not stop there. Use this momentum to broaden your watchlist and uncover other opportunities that might fit your style.

    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.