Core Viewpoint - Zheshang Securities maintains a "buy" rating for Meitu Inc. (01357), projecting revenues of 4.185 billion, 5.281 billion, and 6.493 billion yuan for 2025-2027, with net profits of 964 million, 1.334 billion, and 1.661 billion yuan respectively. The company is valued at a 40x PE for 2026, leading to a target market value of 53.4 billion HKD and a target price of 11.6 HKD, compared to a current 17x PE based on the closing price on February 24, 2026 [1] Market Expectations - AI Agent is reshaping work models and workflows, leading to market debates on whether traditional software tools will be replaced by AI technology, raising concerns about the company's long-term barriers and sustainable growth [1] Company Product Positioning - The company positions itself as a creative platform rather than a simple process software, benefiting from AI technology. Its long-term moat includes aesthetic know-how in beauty editing, a large and stable user base, and a unique workflow paradigm, which are expected to drive innovation in the AI + beauty editing sector and enhance paid penetration rates and market expansion [2] Driving Factor 1: Increase in Paying Users - The increase in paying users is primarily driven by the expansion into overseas markets, leading to an increase in MAU. Enhanced user experience due to AI technology and higher willingness to pay among B-end productivity tool users contribute to the overall increase in paid subscription penetration. The company's 2025 performance forecast indicates a rapid increase in global paying subscribers, with international market growth outpacing that of mainland China, validating the effectiveness of the company's globalization strategy [3] Driving Factor 2: ARPPU Increase - ARPPU, which measures average revenue per paying user, is expected to further drive revenue growth. The company has maintained an upward trend in ARPPU since 2021, with expectations for continued steady growth, primarily due to higher subscription prices for overseas users and greater payment capacity and willingness among B-end users [4]