On September 15, MEITU fell 5.09% in regular trading, trading at HKD 3.995/share, with turnover of HKD 139 million. The stock has continued to retreat from its post-earnings high in late August.
On the news front, CLSA recently published a research note highlighting that competitors launching AI image generation tools have created notable headwinds for the stock. However, the firm stated that MEITU's DesignKit retains competitive advantages in pricing, prompt-to-image consistency, and integrated workflow capabilities, and maintained an Outperform rating with a target price of HKD 14.1. Meanwhile, short selling activity has intensified significantly, with MEITU's short-selling ratio deviation reaching 108.94% on September 14, the highest among media and entertainment peers. Southbound capital has also shown signs of net selling in recent sessions, adding to near-term disposal pressure.
Notably, the company reported H1 adjusted net profit growth of 39.5% year-on-year, with AI productivity application ARR reaching RMB 620 million. Multiple investment banks maintain Buy ratings, with an average target price of HKD 12.12, representing a substantial premium to the current share price.
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