Investment Rating - The report maintains an "Outperform" rating for Meitu (01357 HK) [1][4][11] Core Views - Meitu's total revenue grew 29% YoY to RMB 1 62 billion in H1 2024 driven by strong growth in imaging products [1][5] - Adjusted net profit attributable to shareholders increased 80% YoY to RMB 270 million with a 17% margin up 5 percentage points YoY [1][5] - Gross profit rose 40% YoY to RMB 1 05 billion with gross margin improving to 65% up 5 percentage points YoY [1][5] - Meitu positions itself as an AI application company focusing on enhancing product capabilities rather than competing in large model development [1][5] - The company plans to flexibly acquire model capabilities through self-development procurement and open-source approaches [1][5] Financial Performance - Imaging and design product revenue surged 55% YoY to RMB 931 million in H1 2024 [1][5] - Advertising revenue increased 18% YoY to RMB 410 million with programmatic advertising growing 45% YoY [2][9] - Overseas advertising revenue excluding mainland China jumped 129% YoY [2][9] - Beauty solutions revenue declined 6% YoY to RMB 270 million in H1 2024 [2][9] - R&D expenses rose 45% YoY to RMB 431 million with RMB 59 million allocated to large model computing power [1][5] - Sales expenses decreased 7 5% YoY to RMB 210 million while promotion expenses grew 13% YoY [1][5] Operational Metrics - MAU reached 258 million in H1 2024 up 4% YoY [1][8] - VIP paying members increased 50% YoY to 10 81 million with a 4 2% paying penetration rate up 1 3 percentage points YoY [1][8] - ARPPU remained stable at RMB 187 [1][8] - Meitu Design Studio subscribers reached approximately 960 000 up from 870 000 at the end of 2023 with product revenue growing over 152% YoY [1][8] - Meitu's global market share for imaging and design products is around 13% with significant growth potential [1][8] Financial Forecasts - Revenue is projected to grow 27 3% 23 1% and 21 0% YoY in 2024E 2025E and 2026E respectively [3] - Adjusted net profit attributable to shareholders is forecasted to reach RMB 560 million RMB 790 million and RMB 970 million in 2024E 2025E and 2026E respectively [2][11] - Gross margin is expected to improve to 64% 66% and 67% in 2024E 2025E and 2026E respectively [15] - ROE is projected to be 8 0% 13 1% and 15 8% in 2024E 2025E and 2026E respectively [3] Valuation - The report assigns a fair value range of HKD 4 50 to HKD 4 80 [4] - Current share price is HKD 2 37 with a market capitalization of HKD 10 748 million [4] - PE ratios are forecasted at 17 6x 12 4x and 10 1x for 2024E 2025E and 2026E respectively [3]
美图公司：付费渗透率达4.2%，经调整利润同比增长80%