UBS has issued a research report reiterating its HK$8.40 price target and "Buy" rating for MEITU (01357).

The bank noted that, based on statistics, the total revenue from MEITU's suite of applications in May this year increased by 40% year-on-year.

Within China, revenue from these apps rose 43% year-on-year in May, while overseas revenue grew by 36%. This overseas growth rate surpassed the 31% recorded in the previous year, which UBS attributes to the international expansion of core apps such as Meitu, Meiyan Camera, and Wink.

Management at MEITU has indicated a continued focus on efficiency gains driven by artificial intelligence, stating that AI can significantly shorten research and development cycles.

While AI is capable of generating images or videos, the company believes its value lies in optimizing these AI-generated outputs—a complex process that is difficult to articulate using natural language commands.