HK Stock Market Move | MEITU (01357) rose nearly 4% during midday trading, with adjusted net profit expected to increase by 60% for the full year. Furuise has raised the company's earnings forecast and target price.

MEITU (01357) rose nearly 4% during trading, as of the time of writing, it has risen 2.66%, to HK$4.63, with a turnover of HK$4.07 billion. On the news front, MEITU previously announced a profit joy. For the year ended December 31, 2024, the company's adjusted net profit attributable to equity holders of the parent company is expected to increase by approximately 52% to 60% compared to the year ended December 31, 2023, according to non-International Financial Reporting Standards. This is mainly due to rapid growth in revenue from its core business "Image and Design Products" driven by its artificial intelligence (AI) technology. Morgan Stanley stated that the company's normalization net profit is expected to increase by 52-60% year-on-year, with the midpoint at RMB 575 million, higher than Morgan Stanley's estimate by 5% and higher than guidance by 4%. Credit Suisse pointed out that considering the productivity improvement brought by DeepSeek technology, they have raised their revenue and profit forecasts for MEITU this year, raising their target price from HK$4.6 to HK$5.1, maintaining a "buy" rating and believing that the company's profits will continue to grow rapidly.