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Daiwa Initiates Coverage on MEITU w/ Rating Buy & TP HKD10; Overseas Expansion & Productivity Tools Drive LT Growth
2025-11-07 11:03:10
Daiwa has issued a research report initiating coverage on MEITU (01357.HK) with a Buy rating and a target price of HKD10, based on a 2026 P/E ratio of 35 times, implying an around 1x P/E growth rate.

In the broker's opinion, MEITU has transformed from a photo beautification app company into a diversified digital technology platform offering in-house AI-driven consumer and productivity tools.

Given its ambitious overseas expansion strategy, Daiwa predicts that overseas markets will be a key driver of long-term MAU growth for MEITU.

In addition, MEITU is launching tools like DesignKit and Kaipai targeting e-commerce merchants and content creators. These B2B tools offer higher average revenue per user (ARPU), with subscription rates reaching 7.8% in 1H255.

Daiwa expects MEITU will monetize these productivity tools' overseas versions from 2H26, driving long-term growth in subscription revenue.
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