According to a recent research report from GTHT, they have raised the earnings per share (EPS) estimates for MEITU (01357) for 2025-2027 to CNY 0.21, CNY 0.30, and CNY 0.39, respectively. The firm applies a cautious approach using both PE and PS valuation methods, resulting in a target price of HKD 11.59 and maintains the "Buy" rating. Key observations from GTHT include: MEITU continues to focus on the imaging sector, creating a comprehensive product matrix to cater to diverse vertical needs. In the first half of 2025, the company's total revenue grew by 12.3% year-on-year to CNY 1.8 billion, with a gross margin of 73.6%, an increase of 8.7 percentage points compared to the previous year. Net profit attributable to shareholders rose by 30.8% year-on-year to CNY 397 million, and adjusted net profit grew by 71.3% year-on-year to CNY 467 million. In June 2025, the overall monthly active users (MAU) reached 280 million, showing an 8.5% year-on-year increase, with the MAU in markets outside mainland China rising by 15.3% to 98 million. MAU in productivity tool scenarios increased by 21.1% to 23 million; subscription users grew by over 42% year-on-year to approximately 15.4 million, with a penetration rate of 5.5%. Driven by AI, MEITU's imaging and design business continues to accelerate development focusing on "productivity and globalization." In the first half of 2025, revenue from imaging and design products increased by 45.2% year-on-year to CNY 1.351 billion, accounting for 74.2% of total revenue. According to Quest Mobile data, MEITU's flagship consumer products, MEITU XiuXiu and Beauty Camera, consistently ranked first in MAU for mobile photo beautification and licensed photography categories during the first six months of 2025 in China. In the first half of 2025, MEITU XiuXiu achieved first place in the App Store overall rankings in Cambodia, Laos, and Brunei due to its “AI Flashlight” feature in June, and won category championship titles in the App Store and Google Play across 12 countries including Italy and Turkey. At the beginning of October, it claimed the top overall ranking in the App Store for 14 European countries with its AI Group Photo function. Beauty Camera, featuring the “AI Dressing” function, reached first place in the App Store overall rankings in February in countries such as Thailand, Vietnam, and Japan. In the productivity scenario, the e-commerce design product MEITU Design Studio focuses on AI workflows for e-commerce design, while the video production product Shooting starts concentrates on AI workflows for video creation. In July 2025, the multi-modal AI smart assistant RoboNeo was launched to help users generate diverse visual content. In the first half of 2025, the MAU of productivity tools in markets outside mainland China saw over 90% year-on-year growth.