Investment Rating - The report assigns a "Buy" rating to Meitu Inc. with a target price of HKD 16, implying a projected price-to-earnings ratio of 33.1 times for 2027 [1] Core Insights - The report highlights that generative artificial intelligence has transformed Meitu from a "beautification tool" into an "AI photo and video generation and editing application," expanding its market from consumer entertainment to enterprise productivity tools, which is expected to drive growth in monthly active users, payment ratios, and average revenue per user (ARPU) [1] - Revenue for Meitu is projected to grow at a compound annual growth rate (CAGR) of 29% from 2025 to 2030, with enterprise/productivity revenue expected to account for 44% of total revenue by 2030, up from an anticipated 12% in 2025 [1] - The global AI video and image creative market is forecasted to grow at a CAGR of 44% from 2025 to 2030, reaching USD 39 billion, with Meitu's market share in AI video/image expected to rise to 2% and 17% by 2030, compared to 1% and 13% in 2025 [1]