UBS: Maintains target price of HKD 8.4 for MEITU (01357) with a rating of "buy"

UBS issued a research report stating that it maintains a target price of HK$8.4 for MEITU (01357) and a "buy" rating. UBS stated that according to statistics, the total revenue of Meitu's apps in May this year increased by 40% year-on-year. In China, the revenue of these apps in May increased by 43% year-on-year, while overseas revenue increased by 36%, better than the 31% growth in 2025, mainly benefiting from Meitu, BeautyCam, and Wink's overseas expansion. Meitu's management team stated that they will continue to focus on the efficiency improvements brought by AI, as AI can significantly shorten the research and development cycle. Although AI can generate image sets or videos, the value of Meitu lies in the ability to optimize the generated content, which is difficult to express in natural language.