Jefferies Reaffirms Buy Rating for MEITU with HK$7 Price Target

Stock News06-22

Analysts at Jefferies have maintained their "Buy" rating on MEITU (01357) with a target price of HK$7. The firm noted that MEITU demonstrated the effectiveness of its focused strategy during a recent multimedia festival, with each product targeting specific scenarios and moving from a single-agent to a team-based agency model.

Jefferies highlighted that MEITU launched its large vision model, MiracleVision V6, which accounted for 96.3% of API calls in its first five months. The company emphasized four key shifts in its business development: moving from applications to agencies, from subscriptions to token-based consumption, fostering an AI innovation team, and transitioning from providing features to delivering outcomes.

The report mentioned that MEITU boasts 280 million monthly active users, while its ZCOOL platform has 18 million designers, laying a solid foundation for this shift towards outcome delivery. The company's long history in photos, video, and design, along with its production innovation, is seen as crucial in vertical scenarios.

Jefferies anticipates that MEITU is well-positioned to capture the long-term potential of AI-generated content as a productivity tool.

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