Core Viewpoint - The introduction of AI tools by Anthropic has raised concerns in the market about the software industry narrative shifting from "empowered by AI" to "consumed by AI," affecting companies like Adobe and Meitu. However, Meitu is positioned as a beneficiary of AI technology, with a "buy" rating and a target price of HKD 11.6 from Zheshang Securities [1]. Group 1: Product Positioning and Market Demand - Meitu's products are categorized as decision support software, focusing on subjective aesthetic expression, which differentiates them from simple process optimization tools that AI agents are likely to replace [1]. - The existing customer base of Meitu is not aligned with "one-click AI photo editing" products, as their core demand is for creative tools that allow for subjective aesthetic expression. This is supported by the continuous increase in monthly active users (MAU) since 2021, despite the availability of built-in smartphone editing features [2]. - The willingness of users to pay for personalized aesthetic expression tools is evident, as the number of paying users continues to rise, even with free beauty features available [2]. Group 2: Competitive Advantages and User Retention - Meitu's core advantages lie in its extensive material library and the familiar workflow interface for loyal users, which reduces the likelihood of customer churn even with the emergence of AI-generated products from major model companies [3]. - For potential new customers, Meitu's strategy of introducing new features and product categories provides a first-mover advantage, attracting new users [3]. - The differentiation of new products, such as the video editing tool Wink, has led to significant user engagement, with over 30 million global MAUs, maintaining a strong position in the video tool market despite competition [3]. - Overall, while AI capabilities may alter the interaction forms of Meitu's products, they are unlikely to undermine the company's long-term competitive advantages, including its aesthetic expertise, large and stable user base, and unique workflow paradigm [3].