Investment Rating - The report gives a "Buy" rating for Meitu Inc with a target price of HKD 3 44 per share [4] Core Views - Meitu is a leader in photo editing with a strong user base and high MAU market share of 54% in April 2024 [2] - AI-driven features have increased the user payment ratio from 0 65% in 2020 to 3 7% in 2023 [2] - The company is expanding globally with new features in overseas markets [2] - AI tools like "Meitu Design Studio" are helping SMEs reduce costs and improve efficiency [2] - Revenue for 2024-2026 is projected to be RMB 3 663 billion RMB 4 707 billion and RMB 5 646 billion respectively with net profits of RMB 508 million RMB 700 million and RMB 920 million [2] Company Overview - Meitu founded in 2008 focuses on AI-driven beauty and imaging products with a strong presence in both B2B and B2C markets [13] - The company has a diverse product portfolio including Meitu Xiuxiu Meiyan Camera and Meitu Cloud Repair [13] - Meitu has a stable management team with extensive experience in the internet industry [16][17] Imaging and Design Products - Meitu Xiuxiu dominates the photo editing market with a 54% MAU share in April 2024 [2] - AI features have significantly boosted user payment ratios and subscription revenues [2][24] - The company is expanding into productivity tools for commercial use such as Meitu Design Studio [2][38] - Meitu's AI-driven tools are expected to enhance efficiency in industries like e-commerce advertising and gaming [38] Financial Performance - Revenue for 2023 was RMB 2 696 billion a 29% YoY increase [52] - Gross margin improved to 61 42% in 2023 driven by higher-margin imaging and design products [53] - Net profit margin rose to 13 58% in 2023 due to improved gross margins and cryptocurrency impairment reversals [53] - R&D expenses increased to RMB 635 million in 2023 reflecting the company's focus on AI technology [54] Profit Forecast - Revenue for 2024-2026 is projected to grow at a CAGR of 28 5% reaching RMB 5 646 billion by 2026 [2] - Net profit is expected to grow at a CAGR of 34 2% reaching RMB 920 million by 2026 [2] - The imaging and design products segment is expected to drive growth with a projected revenue of RMB 3 357 billion by 2026 [63] Industry Trends - The imaging digitalization market in China is expected to grow from RMB 12 5 billion in 2022 to RMB 16 billion by 2025 [20] - AI-driven tools are becoming increasingly important in both B2B and B2C markets [20][38] - Meitu's AI tools are well-positioned to capitalize on the growing demand for digital imaging solutions [20][38]
美图公司：AI驱动付费率提升，生产力场景具备弹性