HK Stock Market Move | MEITU (01357) surges over 5% with a higher-than-expected increase in paid users for Meitu; CICC raises full-year revenue forecast.

MEITU (01357) rose more than 5%, as of the time of writing, it rose 4.84% to 5.2 Hong Kong dollars, with a turnover of 1.45 billion Hong Kong dollars. On the news front, on April 29, the 8th Digital China Construction Summit opened in Fuzhou, Fujian. MEITU showcased its imaging and design products such as Meitu Xiuxiu, Beauty Camera, and Kaipai. A relevant person from MEITU stated that in the future, MEITU will promote the leap of digital technology from "usable" to "easy to use", and strive to inject new energy into the high-quality development of China's imaging and design industry, allowing the digital technology dividend to cover a broader population. CICC previously released a research report stating that as of February, the domestic penetration rate of paid services in MEITU's life scenarios had reached 5.2%. Products in this scenario include Meitu Xiuxiu, Beauty Camera, Wink, etc. The bank predicts that with the dual-drive of paid service penetration rate and user growth, Meitu's subscription revenue will increase by more than 40% year-on-year in 2025. Considering that the growth of paid users in Meitu is better than expected, it raised its 2025 revenue forecast by 2% to 4.3 billion yuan, maintaining an adjusted net profit forecast of 850 million yuan; giving a 31 times PE ratio for 2025 and a target price of 6.5 Hong Kong dollars.