Credit Suisse: Maintains "buy" rating on MEITU (01357), target price raised to HK$5.1

Furong Research released a report stating that, considering the productivity improvement brought by the advancement of DeepSeek technology, the revenue and profit forecast for MEITU (01357) this year has been raised. The target price has been increased from HK$4.6 to HK$5.1, maintaining a "buy" rating and believing that the company's profit will continue to grow rapidly. The report stated that last year, adjusted preliminary profit for Meitu is expected to increase by 52% to 60% year-on-year, reaching 560 million to 589 million RMB, compared to market and the bank's expectations of 573 million and 582 million RMB respectively. The growth is mainly driven by rapid growth of core business "image and design products" underpinned by artificial intelligence (AI); overseas market revenue growth faster than the Chinese market; increased AI revenue contribution, driving gross profit growth and gross profit margin improvement; operating expenses growth rate lower than gross profit growth rate.