Meitu's Financial Momentum Expected to Remain Strong, Says Report

On April 15, according to Jin10, a report by Lyon anticipates that Meitu (01357.HK) will maintain strong short-term financial momentum. The report has revised the adjusted net profit forecasts for the fiscal years 2026 and 2027 upwards by 6% and 8%, respectively, to 1.35 billion yuan and 1.68 billion yuan. This adjustment is primarily driven by aggressive overseas expansion, which is expected to increase average revenue per user and the proportion of paying users. However, the target price-to-earnings ratio has been lowered to 17 times, aligning with the industry average, to reflect market concerns over the potential disruption of downstream software business by large language models. The report maintains an 'outperform' rating for Meitu, but the target price has been significantly reduced from HKD 14.1 to HKD 7.