EB SECURITIES: Maintains "buy" rating for MEITU (01357) - announces the release of 8 AI products at the Image Festival.

EB SECURITIES released a research report stating that it maintains a "buy" rating for MEITU (01357), with a forecasted adjusted net profit attributable to shareholders of 13.5/16.8/20.0 billion yuan for the years 2026-2028. During the 2026 MEITU Image Festival, MEITU updated its strategic layout and released 8 AI products (including 4 new products and 4 upgraded versions of existing products). The MEITU Image APP product is undergoing transformation to become more agent-oriented, shifting its service logic from delivering functions to delivering results, and leveraging AI computing power to open up long-term commercial growth space. The main points of EB SECURITIES are as follows: Official launch of the visual large model MeituQiXiang V6 based on the MoE architecture In the period from January to May 2026, 96.3% of the AI function calls in MEITU's image products came from MeituQiXiang. V6 will further integrate with the products, drive innovative functions to quickly land, and achieve top-level effects in image and video design scenarios. Introduction of 8 AI products 1. Picchi: Positioned as a vertical AI tool focusing on portrait retouching, addressing the pain points of common large model retouching not meeting user aesthetics and requiring complex prompts. Its three core functions are "Learn from Me", batch retouching, and "Learn from Others". Picchi is currently available for download on major app stores for users to experience. 2. Artflo: Positioned as a tool to help those who love artistic expression to turn inspiration fragments into conceptual images. The product features an inspiration organizing assistant and an integrated creative workspace, and can store creative assets. The product will be officially launched on June 30, 2026. 3. MVLand AI: Positioned as a vertical tool focusing on music video creation, with the core goal of giving each song its own MV. This product will collaborate with independent music labels, designer community Zcool, and video large model to jointly launch the AIMV creation contest. 4. MeituHub: Positioned as an enterprise AI image custom production line platform. MeituHub, formerly a platform providing image API capabilities, has been polished based on actual customer needs. The AI Agent can assist users in organizing requirements, breaking down tasks, organizing corresponding models and API capabilities to build a complete production line, and support adjusting production line nodes to adapt to demand at any time. Some core capabilities are already available for experience, and the official version will be launched on August 5, 2026. 5. Zcool Designer Community Business Upgrade: In the new version, in addition to strengthening the challenge business, three major upgrades focusing on the core needs of designers have been launched. 6. Meitu Design Studio Upgrade: After four years of deep cultivation in the design field, the studio has served millions of e-commerce sellers. Currently, there are over 1.6 million active paying users per month, and AI generates content over 130 million times per month. After the launch of AI Agent, AI computing power consumption has increased by 8 times. This upgrade includes the built-in AgentTeams architecture configuration, the launch of "Design for Me" human outsourcing service, and a complete landing solution directly delivered to enhance business conversion. 7. Kaitai New Version: The core operating data performance is impressive, with over 3 million active creators in May 2026 and over 400 million pieces of content created so far. This upgrade introduces two core service capabilities: AI voice playback full-link assistant and human creator service; in addition, Kaitai will build a voice playback creator community to lower the barrier for users to create voice content. The new features will be gradually launched in June and July 2026. 8. RoboNeo AI Short Drama Version Upgrade: The new version of RoboNeo is positioned as a daily-upgraded AI short drama creation team, planning to connect creators, AI assets, and commercial partners to build a continuously growing AI short drama ecosystem, achieving a positive cycle of creator experience growth, efficient asset reuse, and rich content supply to commercial partners, continuously amplifying content value. The new version of RoboNeo AI short drama will be officially launched on August 5, 2026, with some features already gradually opening up. Risk Warning: AI function effectiveness below expectations, subscription user growth below expectations, intensified industry competition.