Core Viewpoint - Meitu Inc. (01357) shares rose over 6%, driven by record revenue growth in its three core apps in September, with significant contributions from overseas markets [1] Revenue Performance - In September, combined revenue from Meitu Xiuxiu, Meiyan Camera, and Wink increased by 38% year-on-year and 1% quarter-on-quarter [1] - Overseas revenue saw a remarkable growth of 56% year-on-year and 9% quarter-on-quarter, while domestic revenue grew by 29% year-on-year [1] - For Q3, the total revenue from the three apps grew by 39% year-on-year and 2% quarter-on-quarter, with overseas revenue increasing by 45% year-on-year and 14% quarter-on-quarter, and domestic revenue rising by 37% year-on-year [1] Strategic Initiatives - The company has historically launched festive-themed AI entertainment features in its apps during holiday seasons, such as the "Halloween Monster Guide" in 2019 and the "Christmas Try-On Week" using AR technology in 2020 [1] - With globalization becoming a key strategy, Meitu is expected to introduce festive-themed AI features in Q4, coinciding with major holidays like Halloween, Thanksgiving, Christmas, and New Year's, which could drive traffic growth [1]

Core Insights - The 2025 "Top Listed Companies Reputation List" has entered a critical phase of data model screening, aiming to identify publicly listed companies with long-term growth value through multi-dimensional data analysis [1] - The collaboration with Tonghuashun, a leading financial data company, has been established to enhance the selection process, which was previously initiated in 2024 [1][4] - The performance of last year's listed companies has validated the effectiveness of the data model used in the selection process [4] Group 1: Market Performance - Over a hundred A-share companies that were on last year's list have outperformed the "Double Innovation Index" in terms of stock price growth this year [2] - The highest stock price increases among these companies include Zhejiang Rongtai at 430.84%, New Yi Sheng at 387.74%, and Giant Network at 283.15% [2] - The overall A-share market has shown a robust upward trend, driven by macroeconomic recovery and improved corporate earnings [2] Group 2: Industry Trends - The 2025 list has introduced new industry categories, including artificial intelligence, overseas industries, aerospace, and innovative pharmaceuticals, reflecting the current economic transformation in China [4][5] - Companies like Giant Network and New Yi Sheng are positioned well in the AI and global markets, with New Yi Sheng achieving 79% of its revenue from overseas [4][5] - The focus on traditional consumption sectors remains, as they are crucial for economic growth despite facing pressure this year [5] Group 3: Future Outlook - The "14th Five-Year Plan" emphasizes expanding domestic demand and enhancing consumption, which is vital for stabilizing the economy [6] - The ongoing data screening phase aims to identify companies that can emerge as the next growth benchmarks in their respective sectors [6] - The final candidate list will be revealed on November 23, 2025, highlighting companies that demonstrate long-term value [6]

Core Viewpoint - The article discusses the launch and features of RoboNeo, an AI image and video generation tool developed by Meitu, highlighting its capabilities and user experience in creating unique visual content [46][48]. Group 1: Product Features - RoboNeo allows users to generate images and videos through conversational prompts, making it user-friendly and accessible [10][12]. - The tool includes a variety of editing functions such as AI image modification, layer separation, and high-resolution enhancements, which are comparable to features found in Photoshop [17][20][43]. - It can handle vague prompts by engaging in a questioning mode to clarify user intentions, enhancing the overall interaction [15][16]. Group 2: User Experience - Users have reported a mixed experience with RoboNeo's image generation speed, noting that it can be slow at times, potentially indicating a need for premium features [44]. - The tool's video generation capabilities have shown some limitations, particularly in logical coherence and text generation, which may require further refinement [44][42]. - Overall, the user interface is designed to be intuitive, with a layout that caters to common usage patterns among Chinese users [10][9]. Group 3: Development Insights - RoboNeo was developed by a small team at Meitu within a month, emphasizing a rapid development cycle without traditional bureaucratic processes [47][48]. - The fast-paced development approach reflects the competitive landscape of AI image and video tools, where timely innovation is crucial for market relevance [48].

Group 1 - The "Meitu National Trend Pattern Program" second phase course was successfully launched on October 23, focusing on innovative expressions and cross-border integration of national trend patterns [1] - The course featured three guest lecturers from digital creativity, national comic aesthetics, and clothing culture, providing diverse perspectives on national trend patterns [1] - Meitu's creative material design department head, Zhou Yanshan, shared insights on how Meitu uses AI imaging technology to digitally interpret and creatively reinterpret classic patterns, injecting new vitality into traditional culture [1] Group 2 - Renowned fashion designer and director Zhang Kejia led a session on integrating traditional patterns and ethnic elements into modern fashion design, emphasizing the importance of reviving and disseminating traditional culture [2] - A student, Lai Yuxuan, expressed that the course expanded her understanding of the contemporary value of traditional culture, highlighting how technology and design can make traditional patterns engaging and inspiring for future creations [2] - Meitu, as the first company to initiate a "Digital Communication Project for Chinese Traditional Culture," aims to continue fostering young creative talent for the transmission and dissemination of traditional culture through the National Trend Pattern Program [2]

Core Viewpoint - The company emphasizes the importance of AI during the investor day, having largely achieved the first phase goal of enabling mutual function calls, significantly enhancing image editing efficiency. The company plans to enter the second phase next year, focusing on collaborative editing, and aims for further integration and upgrades in the third phase [1][4]. AI Integration and Product Development - The AI agent product RoboNeo has launched innovative features such as AI photo generation and 3D figurines, topping domestic category charts in its first week and integrating with Nano Banana for the overseas version. The AI e-commerce product WearWow has connected with Taobao, showcasing the effectiveness of the strategic partnership with Alibaba. Meitu Xiuxiu has reached the top of app charts in 14 European countries with its "AI photo" feature [1][2][4]. - The company is advancing its AI strategy across all fronts, with the first phase focusing on mutual function calls and the second phase set to introduce collaborative editing capabilities. Future plans include ecological transformation and further integration of application ecosystems [1][4]. Revenue Growth and Market Performance - In September, the combined revenue of the three core apps (Meitu Xiuxiu, Meiyan Camera, Wink) saw a year-on-year increase of 38%, with overseas revenue growing by 56%. For Q3, the total revenue also grew by 39% year-on-year, with overseas revenue increasing by 45% [3][4]. - The company anticipates adjusted net profits of 941 million, 1.32 billion, and 1.65 billion yuan for 2025-2027, reflecting year-on-year growth rates of 60.49%, 40.29%, and 25.37% respectively, with corresponding PE ratios of 38.94, 27.76, and 22.14 [1][4]. Seasonal Marketing and Future Innovations - As the fourth quarter approaches, the company is expected to launch AI entertainment features aligned with holiday themes, which historically have driven traffic growth. The upcoming holidays include Halloween, Thanksgiving, Christmas, and New Year [3].

Core Insights - In September, ByteDance led the overseas revenue ranking for non-gaming companies, followed by Ruiqi Software and Huanyou Group (NASDAQ: YY) [3][4] - The overall trend indicates a concentration of revenue among top-tier companies, while mid-tier companies generally experienced declines [3][4] - Notable revenue growth was observed for companies like Hehe Information (SH: 688615), Dandu Technology, and Xingyin Technology, with the latter's app "Xiaohongshu" achieving over 13.7% month-on-month revenue growth [3][4] Non-Gaming Companies - ByteDance maintained a significant lead in overseas revenue, with Ruiqi Software and Huanyou Group closely following [3] - Xiaomi (HK: 01810) and Kingsoft (HK: 03888) were the only mid-tier companies to report revenue growth, with Xiaomi's "Xiaomi Home" app seeing over 3% month-on-month growth [4] - Appxy and Xiaoying Technology also reported slight revenue increases of 0.7% and 1.4%, respectively, while other companies faced varying degrees of decline [4] Gaming Companies - The mobile gaming market continued to cool down in September, leading to noticeable revenue declines for many domestic companies [6][7] - miHoYo's flagship game "Genshin Impact" saw nearly a doubling of revenue due to the 6.0 version update, resulting in over 19.4% month-on-month growth [7] - Lemon Microfun's revenue increased by over 8.8%, driven by new and existing products, with significant contributions from themed events [7][8] Mid-Tier Gaming Companies - Kuro Game's "Wuthering Waves" achieved over 43.3% month-on-month revenue growth following a successful update and new character introduction [8] - New products from NetEase (NASDAQ: NTES) showed strong revenue potential but only partially offset overall declines [8] - BeheFun's game "Top Tycoon: Coin Theme Empire" reported over 34.8% revenue growth, while LuZhu Games and Glacier Network made a return to the rankings [9]

Core Insights - The rise of Nano Banana has sparked discussions about general models "consuming" vertical applications, highlighting the need for specialized tools in certain scenarios [2] - Meitu's management emphasizes that their products will continue to evolve with the development of large models, focusing on end-to-end solutions in vertical markets where general models may fall short [2] - Meitu's financial performance shows promising growth, with a revenue of 1.8 billion yuan in the first half of 2025, a year-on-year increase of 12.3%, and a net profit of 397 million yuan, up 30.8% [2] Company Performance - In the first half of 2025, Meitu achieved a global monthly active user count of 280 million, reflecting an 8.5% year-on-year growth, with nearly 100 million users from overseas, growing over 15% [2] - Despite strong performance, Meitu faces challenges from international giants like Adobe and Canva, which are expanding their market presence in design tools, necessitating continuous breakthroughs in technology and market depth for Meitu [3]

Core Viewpoint - The multi-modal industry is experiencing rapid iteration this year, with improvements in both lower and upper technical limits, leading to accelerated commercialization and product differentiation among competitors [1][2]. Technology Perspective - In October, major overseas companies like OpenAI and Google updated their video models, enhancing the technical capabilities of the industry. OpenAI's Sora2 shows significant improvements in physical motion realism and narrative capabilities, allowing Pro users to generate 25-second videos, compared to 5-10 seconds for other models. Google’s Veo3.1 has improved audio generation and visual quality [1]. - Domestic companies such as Kuaishou and others have also made advancements in their models, enhancing capabilities in physical laws, visual aesthetics, and consistency [1]. Product Perspective - OpenAI's Sora app has rapidly gained traction, surpassing 3 million users within 10 days of launch, indicating a shift towards C-end user engagement. The product paths for video models are becoming clearer, with OpenAI focusing on narrative-driven content creation for casual users, while Veo and Kuaishou cater to professional content creators [2][3]. Industry Expansion - The use of AI video tools is accelerating in high-difficulty content production areas such as films and TV series. The first AIGC war film, "Take Me to Fly," has achieved significant success, indicating the potential for AI video technology to enhance commercial operations [3]. - The application of Sora is expected to further commercialize C-end user engagement through advertising and IP sharing, contributing to the overall growth of the multi-modal industry [3]. Investment Recommendations - The report emphasizes the importance of vertical multi-modal AI application opportunities, highlighting the potential for technological breakthroughs and cost optimization to drive user growth and commercialization. Companies with international multi-modal AI applications are expected to see faster growth [4]. - Specific companies to watch include Kuaishou, Meitu, and Wanxing Technology, with recommendations to monitor major players like Alibaba and Tencent for their practical application developments [4].

Investment Rating - The industry investment rating is "Positive" and is maintained [5] Core Viewpoints - The multi-modal industry is experiencing rapid iteration this year, with improvements in both lower and upper limits of technology, impacting product and commercialization [2] - There is a trend of product path differentiation, with companies like Google and Kuaishou focusing on different user segments, leading to accelerated commercial applications [2] - The industry is expected to expand significantly due to increased user growth, payment penetration, and commercialization [3] Summary by Sections Industry Overview - The multi-modal technology sector is seeing significant advancements, with major players like OpenAI and Google updating their video models, enhancing capabilities in narrative and visual quality [7] - The introduction of OpenAI's Sora app has rapidly increased user engagement, indicating a shift towards consumer-oriented applications [7] Investment Recommendations - Emphasis is placed on vertical multi-modal AI application opportunities, particularly those with international expansion strategies, which may experience faster growth [3] - Recommended stocks include Kuaishou-W (01024, Buy), Meitu Inc. (01357, Buy), and Wanjun Technology (300624, Not Rated) [3] - Attention is advised on major companies like Alibaba-W (09988, Buy) and Tencent Holdings (00700, Buy) for their potential revenue growth and valuation restructuring [3]

Core Viewpoint - Cathay Securities has raised the EPS forecast for Meitu Inc. for 2025-2027 to 0.21, 0.30, and 0.39 CNY respectively, with a target price of 11.59 HKD, maintaining a "Buy" rating [1] Financial Performance - In the first half of 2025, Meitu's total revenue increased by 12.3% year-on-year to 1.8 billion CNY, with a gross margin of 73.6%, up by 8.7 percentage points [2] - The net profit attributable to shareholders grew by 30.8% to 397 million CNY, while the adjusted net profit increased by 71.3% to 467 million CNY [2] - The overall Monthly Active Users (MAU) reached 280 million, a year-on-year increase of 8.5%, with MAU outside mainland China growing by 15.3% to 98 million [2] Product Development and Market Position - Meitu's image and design product revenue rose by 45.2% to 1.351 billion CNY, accounting for 74.2% of total revenue [2] - The flagship products, Meitu Xiuxiu and Meiyan Camera, maintained the top positions in MAU rankings for mobile image beautification and licensed photography in China [2] - The introduction of AI features has significantly contributed to the company's success, with Meitu Xiuxiu achieving top rankings in multiple countries' App Stores [3] Innovation and AI Integration - The company launched various AI-driven features, such as "AI Flashlight" and "AI Dressing," which have gained significant traction in international markets [3] - The productivity tool, Meitu Design Studio, focuses on AI workflows for e-commerce design, while the video production tool, Kaipai Video, emphasizes AI-driven video creation [3] - In the first half of 2025, MAU for productivity tools outside mainland China saw over 90% year-on-year growth [3]