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].

Summary of Meitu Inc Investor Day Takeaways Company Overview - **Company**: Meitu Inc (1357.HK) - **Industry**: Greater China IT Services and Software - **Current Stock Rating**: Overweight - **Price Target**: HK$15.70 - **Current Price (as of Oct 10, 2025)**: HK$9.10 - **Market Capitalization**: RMB 38,448 million - **52-Week Range**: HK$12.56 - HK$2.35 Key Takeaways from the Investor Day 1. **AI Features Presentation**: Meitu showcased AI capabilities in its leisure apps (Meitu Xiuxiu, Wink, WearWow) and productivity apps (DesignKit, Kaipai, RoboNeo) which impressed investors [3][4] 2. **Management's Confidence**: Management expressed confidence in Meitu's ability to compete in the AI landscape, emphasizing its unique last-mile service that AI models cannot replicate [4][10] 3. **Revenue Structure**: The Chair/CEO indicated that subscription revenue will remain the primary component over the next five years, despite a rise in token-based consumption [14] 4. **User Engagement**: Meitu's applications have gained popularity, with Meitu Xiuxiu ranking first in 14 European countries' iOS app store [15] 5. **Feature Development**: The company is leveraging its AI Agent (RoboNeo) to externalize feature development, allowing users to create and share customized effects, enhancing user engagement and data collection [15][18] Financial Metrics - **2026 P/E Ratio**: 29x, slightly below the historical average of 30x [5] - **Projected Revenue Growth**: - 2025: RMB 4,021 million - 2026: RMB 5,120 million - 2027: RMB 6,771 million [7] - **Projected EPS**: - 2025: RMB 0.21 - 2026: RMB 0.27 - 2027: RMB 0.40 [7] Strategic Focus 1. **AI Integration**: Meitu plans to integrate AI Agents into its main apps and launch collaborative features in 2026 [10][18] 2. **User-Centric Development**: The company is adopting a more open approach to feature development, utilizing user feedback to create popular features [15] 3. **Competitive Edge**: Meitu's expertise in computer vision and systematic engineering capabilities are seen as key differentiators in the competitive AI landscape [10][15] Risks and Opportunities - **Upside Risks**: Faster user penetration due to AI adoption, higher-than-expected average revenue per paying user (ARPPU), and improved operating leverage [21] - **Downside Risks**: Slower user growth, increased R&D expenses, and intensified competition from larger internet companies [21] Conclusion Meitu Inc is positioned to leverage its unique capabilities in AI and user engagement to drive growth in a competitive landscape. The company's focus on subscription revenue and innovative feature development is expected to support its long-term growth strategy.