Core Viewpoint - Meitu is a leading domestic imaging tool company that has undergone substantial changes in its fundamentals since 2023, focusing on core imaging and design product business after management changes and the sale of all cryptocurrency holdings [1] Group 1: Company Overview - Founded in 2008, Meitu started with the image editing software "Meitu Xiu Xiu" and has built a diverse ecosystem covering imaging tools, design products, and beauty industry solutions [1] - The company has accumulated deep technical capabilities, aesthetic data, and user insights over more than a decade, driven by a focus on R&D rather than sales [1] Group 2: Business Focus and Changes - In June 2023, the founder and CEO Wu Xinhong replaced Cai Wensheng as chairman, indicating a shift towards a more focused business strategy [1] - The introduction of GenAI is expected to enhance product capabilities, increasing consumer life scenarios and expanding new product categories for business productivity [1] Group 3: Consumer Market Insights - Meitu's core consumer products, such as Meitu Xiu Xiu and Beauty Camera, cater to self-satisfaction and social needs, primarily targeting female users from the post-90s and post-00s generations [2] - There is significant potential for the domestic consumer market's payment rate to double, driven by generational shifts in the beauty and imaging sector [2] Group 4: Business-to-Business (B2B) Opportunities - The competitive landscape for Meitu's B2B products, including Meitu Design Studio and Kaipai, has eased, with AI operations replacing traditional studio shoots, helping e-commerce merchants reduce costs [2] - A strategic partnership with Alibaba is set to enhance the promotion of Meitu's AI e-commerce tools on Alibaba's platforms, facilitating penetration into small and medium e-commerce clients [2] Group 5: International Expansion - Since the second half of 2024, Meitu has increased investments in overseas markets, establishing offices and hiring local staff, which has led to a resurgence in overseas monthly active users (MAU) [3] - Successful AI features like "AI Hairstyle" and "AI Outfit Change" have contributed to the growth of Meitu's overseas products, demonstrating the effectiveness of technical advancements and localized operations [3] Group 6: Financial Projections - The company is projected to achieve adjusted net profits of 851 million, 1.163 billion, and 1.509 billion yuan for 2025-2027, reflecting year-on-year growth rates of 45%, 37%, and 30% respectively [3] - A target price-to-earnings ratio of 50x for 2025 suggests a target market capitalization of 46.6 billion HKD, indicating a potential upside of 33% from the closing price on June 19, 2025 [3]

Investment Rating - The report initiates coverage with a "Buy" rating for Meitu Inc. [2][7] Core Insights - Meitu Inc. is a leading player in the domestic imaging tools market, evolving through cycles with a focus on AI and aesthetics. The company has transitioned to a more concentrated business model following a management change and divestment from cryptocurrency, emphasizing core imaging and design products [6][9]. - The introduction of Generative AI (GenAI) has significantly enhanced the company's product capabilities, expanding both consumer (toC) and business (toB) offerings [6][8]. - The report anticipates substantial growth in adjusted net profit from 2025 to 2027, projecting figures of 851 million, 1,163 million, and 1,509 million CNY respectively, with year-on-year growth rates of 45%, 37%, and 30% [6][7]. Summary by Sections 1. Domestic Imaging Tools Leadership - Meitu Inc. has established a diverse ecosystem starting from its flagship product, Meitu Xiuxiu, and has developed various imaging tools and design products over the years [6][18]. - The company has a strong technical foundation and user insight, having invested heavily in R&D since its inception [6][25]. 2. Consumer (toC) Consumption Attributes - The consumer segment is driven by self-enhancement and social sharing needs, with a significant user base among young females, particularly those born in the 1990s and 2000s [6][49]. - The report suggests that the long-term payment rate in the domestic toC market has substantial room for growth, potentially doubling [6][8]. 3. Business (toB) Productivity Scene - Meitu's toB products, such as Meitu Design Studio, leverage AI to reduce costs for e-commerce businesses, alleviating competitive pressures in the market [6][8]. - A strategic partnership with Alibaba is expected to enhance the promotion of Meitu's AI tools on e-commerce platforms [6][8]. 4. International Expansion Efforts - The company has increased its investment in overseas markets, establishing offices and hiring staff in various regions, which has led to a resurgence in monthly active users (MAU) [6][8]. - Successful AI features like "AI Hairstyle" and "AI Outfit Change" have contributed to user growth in international markets [6][8]. 5. Financial Forecast and Valuation - The report projects revenue growth for Meitu's imaging and design products at 42%, 29%, and 21% from 2025 to 2027, respectively [8][9]. - A target market capitalization of 46.6 billion HKD is set, reflecting a 33% upside potential from the closing price on June 19, 2025 [7][8].

Core Insights - The article presents the market capitalization rankings of the top 50 Chinese technology and internet companies as of June 20, 2025, highlighting their respective valuations in billions of dollars [1]. Group 1: Market Capitalization Rankings - The top three companies by market capitalization are: 1. Alibaba: $1,000.00 billion 2. Tencent: $900.00 billion 3. Baidu: $290.62 billion [3][4]. - Other notable companies in the top 10 include: - Kuaishou: $308.94 billion - Semiconductor Manufacturing International Corporation (SMIC): $403.59 billion - JD.com: $459.34 billion [3][4]. Group 2: Additional Rankings - Companies ranked from 11 to 20 include: - Ideal Automotive: $282.81 billion - Beike: $217.69 billion - Xpeng Motors: $177.13 billion [3][4]. - The rankings continue with companies like: - New Oriental: $76.78 billion - Vipshop: $75.79 billion - Kingsoft: $70.42 billion [4][5]. Group 3: Valuation Trends - The article indicates a competitive landscape among Chinese tech firms, with significant valuations reflecting their market positions and growth potential [1]. - The data is based on the latest exchange rates, converting values from Hong Kong dollars to US dollars [5].

Core Insights - In May, ByteDance maintained a significant lead in overseas revenue among non-gaming Chinese companies, while Ruqi Software saw a revenue surge of over 32.4% due to its AI-enhanced app features [3][4] - Meitu's overseas revenue increased by over 12.4% driven by its AI features in the app "Wink," contributing to its stable ranking [3] - Xiaohongshu, rebranded as "rednote," experienced a 75% increase in overseas revenue, helping its parent company rise in rankings [4] Non-Gaming Companies - ByteDance ranked first with 78 apps, maintaining its leading position in overseas revenue [1] - Ruqi Software's app "PictureThis" achieved an estimated monthly revenue of nearly 100 million yuan, marking a continuous growth trend [3] - Meitu's "BeautyCam" and other apps are part of its strategy to embrace AI, contributing to revenue growth [3] - Xiaohongshu's global strategy has led to a stable monthly active user base exceeding 10 million [4] - Youku's overseas version saw an 18.9% revenue increase due to popular content, allowing it to return to the rankings [4] Gaming Companies - Diandian Interactive's new game "Kingshot" saw a revenue increase of over 81.7%, reaching an estimated 190 million yuan [7] - Lilith's game "AFK Journey" experienced a revenue growth of over 54.9%, particularly in the U.S. market [7] - NetEase's new game "Dunk City Dynasty" generated over 1 million USD in less than ten days, indicating potential for future growth [8] - Jiangyu Interactive's "Top Heroes" achieved an estimated revenue of nearly 230 million yuan, contributing to its ranking improvement [8] - Yishijie’s new game "Lands of Jail" generated over 8.21 million USD, with a growth rate of over 75.4% [9]

Group 1 - Morgan Stanley's stake in Meitu (01357.HK) has decreased from 5.48% to 4.30% [1]

机构：开源证券 研究员：张可/荀月 战略聚焦AI 深化、全球化、生产力，付费渗透率有望持续提升（1）国内C 端生活场景用户规模提升空 间有限，B 端生产力场景及全球化成为美图撬动新增量的核心战略。2024 年12 月，美图中国内地市场 MAU1.71 亿，同比基本持平，中国内地以外市场MAU 达到9,451 万，同比增长21.7%。（2）AI 赋能 +全球化+生产力场景有望驱动付费渗透率及ARPU 提升。2024 年美图生活及生产力场景付费用户渗透 率为4.7%，参考腾讯音乐2024Q4 付费渗透率为21.8%、Canva 付费率10%左右，付费渗透率仍有较大提 升空间。 风险提示：技术迭代风险、用户流失风险、监管政策变动 AI 打开影像美化增量空间，美图凭借用户+场景+技术优势从工具向生态进化（1）行业：国内影像美化 市场C 端用户规模稳定，付费意愿持续提升；B 端AI降低创作门槛，降本增效成为首要价值，电商广 告、影像制作等场景需求快速增长，商业化提速。目前国内影像美化领域C 端应用繁荣，B 端仍处于探 索期。C端核心厂商包括工具类应用如美图秀秀、互联网公司如字节跳动的醒图及剪映等，B 端海外 Adobe ...

Group 1: Overview of Market Trends - The performance of the Shanghai Composite Index and the ChiNext Index over the past year shows significant fluctuations, with the ChiNext Index experiencing a decline of 32% [2][3] - The top five performing industries recently include Beauty Care, Banking, and Pharmaceutical Biotechnology, while the bottom five include Defense, Computer, and Electronic sectors [3][4] Group 2: Company Insights - Meitu Inc. (01357.HK) - Meitu is positioned as a leader in the visual economy, leveraging AI to accelerate commercialization, with projected revenues of 4.14 billion, 4.99 billion, and 5.82 billion yuan for 2025-2027, reflecting growth rates of 23.8%, 20.6%, and 16.6% respectively [6][7] - The company has a large user base and is expanding its product offerings, with a monthly active user count of 266 million as of December 2024, showing a year-on-year growth of 6.7% [7][8] - Meitu's strategy focuses on enhancing AI capabilities, global expansion, and productivity, with a projected increase in paid user penetration rates [8] Group 3: Company Insights - Greentown China Holdings Limited (03900.HK) - Greentown China reported a growth in monthly sales, with a total sales amount of 186 billion yuan in May 2025, marking a year-on-year increase of 14.8% [9][11] - The company maintains a strong land acquisition strategy, with a total of 30 new land plots acquired in the first five months of 2025, reflecting a land acquisition intensity of 84% [11][12] - Profit forecasts for 2025-2027 are set at 3.33 billion, 4.54 billion, and 5.43 billion yuan, with corresponding EPS of 1.31, 1.79, and 2.14 yuan [9][11] Group 4: Company Insights - Poly Developments and Holdings Group Co., Ltd. (600048.SH) - Poly Developments remains the top-ranked company in the industry despite a decline in sales amount and area in May 2025, with a signed sales amount of 285.12 billion yuan, down 19.26% year-on-year [14][15] - The company has a strong focus on high-tier cities, with over 90% of land acquisitions occurring in first and second-tier cities [14][16] - Profit forecasts for 2025-2027 are estimated at 5.68 billion, 6.56 billion, and 7.51 billion yuan, with corresponding PE ratios of 17.2, 14.9, and 13.0 [14][15] Group 5: Company Insights - Fangsheng Pharmaceutical Co., Ltd. (603998.SH) - Fangsheng Pharmaceutical's newly approved product, a traditional Chinese medicine for tension-type headaches, is expected to enhance its performance in the cardiovascular sector, with profit forecasts of 308 million, 378 million, and 457 million yuan for 2025-2027 [18][19] - The prevalence of tension-type headaches presents a significant market opportunity, as they account for a large percentage of primary headache cases [19][20] Group 6: Company Insights - Zai Lab Limited (09688.HK) - Zai Lab is adopting a dual strategy of "License-in + Independent R&D" to build a differentiated product pipeline, with expected revenues of 567 million, 830 million, and 1.226 billion USD for 2025-2027 [22][23] - The company anticipates significant growth from its lead product, with multiple key products expected to submit NDA applications in 2025 [22][23]

Investment Rating - The report assigns a "Buy" rating for the company, Meitu Inc. [5] Core Insights - Meitu is positioned as a leader in the visual economy, leveraging AI to accelerate commercialization. The company focuses on image and design products, with a strong emphasis on AI-driven productivity and global expansion. The projected revenue for 2025-2027 is estimated at 41.4 billion, 49.9 billion, and 58.2 billion CNY, respectively, with corresponding year-on-year growth rates of 23.8%, 20.6%, and 16.6% [5][6][15]. Summary by Sections Company Overview - Meitu Inc. was founded in 2008 and listed on the Hong Kong Stock Exchange in December 2016. The company aims to merge art and technology, providing innovative image and design products while promoting digital upgrades in the beauty industry. The main business segments include image and design products, beauty solutions, and advertising services, covering both B2B and B2C markets [15][17]. Industry Analysis - The domestic image beautification market is experiencing stable growth in C-end user scale, with increasing willingness to pay. The B-end market is rapidly expanding, driven by AI that lowers creative barriers and enhances efficiency. The overall market size for image digitization in China is projected to approach 160 billion CNY by 2025, with significant growth in various application scenarios [30][32]. Competitive Advantages - Meitu has built a core advantage through a combination of user base, application scenarios, and technology. The company has a large user base, with MAU reaching 266 million as of December 2024, showing a year-on-year growth of 6.7%. The company is transitioning from a tool-based application to a comprehensive image ecosystem, focusing on vertical scenarios and enhancing product richness and usability [46][49]. Financial Projections - The financial outlook for Meitu indicates substantial growth, with expected revenues of 41.4 billion CNY in 2025, 49.9 billion CNY in 2026, and 58.2 billion CNY in 2027. Adjusted net profits are projected to be 8.5 billion CNY, 11.4 billion CNY, and 14.6 billion CNY for the same years, reflecting year-on-year growth rates of 44.7%, 33.9%, and 27.9% respectively [5][6][14]. Global Expansion Strategy - Meitu is actively pursuing a global expansion strategy, with a focus on increasing its user base outside of China. As of December 2024, MAU in markets outside of mainland China reached 94.51 million, a year-on-year increase of 21.7%. The company aims to leverage AI capabilities to enhance product offerings and meet diverse local needs [63][64].

Investment Rating - The report assigns a "Buy" rating for the company, Meitu Inc. [5] Core Insights - Meitu is positioned as a leader in the visual economy, leveraging AI to accelerate commercialization. The company focuses on image and design products, with a strong emphasis on AI-driven productivity and global expansion. Revenue projections for 2025-2027 are estimated at 41.4 billion, 49.9 billion, and 58.2 billion CNY, respectively, with corresponding year-on-year growth rates of 23.8%, 20.6%, and 16.6% [5][6][15]. Summary by Sections Company Overview - Meitu Inc. was founded in 2008 and listed on the Hong Kong Stock Exchange in December 2016. The company aims to merge art and technology, providing innovative image and design products while promoting digital upgrades in the beauty industry. Its main business segments include image and design products, beauty solutions, and advertising, covering both B2B and B2C markets [15][17]. Industry Analysis - The domestic image beautification market is experiencing stable growth in C-end user scale, with increasing willingness to pay. The B-end market is rapidly expanding, driven by AI that lowers creative barriers and enhances efficiency. The overall market size for image digitization in China is projected to approach 160 billion CNY by 2025, with significant growth in various application scenarios [30][32]. Competitive Advantages - Meitu has built a core advantage through a combination of user base, application scenarios, and technology. The company has a large user base, with MAU reaching 266 million as of December 2024, showing a year-on-year growth of 6.7%. The company is transitioning from a tool-based application to a comprehensive image ecosystem, focusing on vertical scenarios and enhancing product richness and usability [46][49]. Financial Projections - Revenue for 2023 is reported at 2.696 billion CNY, with a year-on-year growth of 29.3%. Adjusted net profit for the same year is 356 million CNY, reflecting a significant increase of 334.9% year-on-year. The company expects continued growth in revenue and profit margins through 2027, with adjusted net profits projected at 1.456 billion CNY by then [6][14][24]. Global Expansion Strategy - Meitu is actively pursuing global expansion, with a focus on increasing its user base outside of mainland China. As of December 2024, MAU in markets outside of mainland China reached 94.51 million, a year-on-year increase of 21.7%. The company aims to leverage localized product development and AI capabilities to enhance its global presence [63][64].

Group 1: Bitcoin ETFs and Market Developments - BlackRock's Bitcoin spot ETF (IBIT) has reached an asset size of $72.4 billion, making it one of the top 25 ETFs in the U.S. just 1.4 years after its launch [1] - Trump Media & Technology Group's social platform Truth Social has submitted an application for a Bitcoin spot ETF, potentially becoming the first social media platform to do so [1] Group 2: Corporate Holdings and Risks - Standard Chartered Bank warns that the current trend of corporate Bitcoin holdings, totaling 673,800 BTC (3.2% of total supply), may lead to forced selling if prices drop below the average purchase price by 22% [3] - Meitu's CEO revealed that the company made a profit of 570 million yuan from liquidating its cryptocurrency holdings, with 80% of the profits distributed to shareholders [4] Group 3: Binance and Market Position - Binance holds the largest share of stablecoin reserves, accounting for 59% of the total with $31 billion in USDT and USDC [6] - Binance has attracted $180 billion in stablecoin inflows since 2025, leading the market in this regard [6] Group 4: Regulatory Perspectives - SEC Commissioner Hester Peirce emphasizes the importance of Bitcoin technology for maintaining freedom and advocates for citizens' rights to use cryptocurrency mixers [8] Group 5: Market Trends and Analysis - Bitcoin's price has recently fluctuated, with a low of $103,700, and analysts suggest that breaking key support and resistance levels will determine the next market trend [10]