1、China(PRC)|InternetMeituEquity ResearchAugust 18,2025 ThomasChong*|Equity Analyst852 3743 8016|ZoeyZong*|Equity Analyst852 3743 8163|FY(Dec)2023A2024A2025E2026ERev.(MM)2,696.03,341.03,739.04,405.0Adj Net Profit3685899401,116Embrace AI Productivity Tools andGlobalization Opportunities AheadMeitu repo

2、rted 1H results,with adjusted earnings at the high end ofearnings range.AI agent RoboNeo is in product refinement stage andcommercialization in end Aug/early Sep.Cooperation with BABA coverslarge models,ecommerce,and cloud.Management is positive aboutproductivity tools outlook in overseas market,giv

3、en the success of Kaipai indomestic market.We revise up our adjusted net profit in 2025 after a solidset of results.Maintain Buy.Better-than-expected 1H revenue in photo,video,and design products;De-emphasis ofnoncore beauty industry solutions.Meitu announced preliminary earnings range in Jul-25(lin

4、k).Total revenue grew 12%YoY(vs our estimate at 18%)to RMB1.8bn.By segment,revenuefrom photo,video,and design products grew 45%YoY(vs our estimate at 42%)to RMB1.35bn(74%of total).Revenue from beauty industry solutions decreased by 89%YoY(vs our estimateat 55%)to RMB30m(2%of total).Advertising reven

5、ue grew 5%YoY(vs our estimate at 12%)toRMB434m(24%of total).Gross profit grew 27%YoY(vs our estimate at 31%)to RMB1.34bn,and GPM expanded 8.7pp YoY to 73.6%(vs our estimate at 72.2%).Adjusted net profit grew71%YoY to RMB467m(vs preliminary earnings range of RMB450-469m,65%to 72%YoYgrowth).MAU increa

6、sed by 8.5%YoY to 280m,and paying subscribers increased by 42%YoYto 15.4m.Paying ratio reached 5.5%(vs our estimate at 5.7%).By segment,paying subscribersfor productivity tools reached 1.8m(8%paying ratio)and leisure products are about 13.6m(5.3%in paying ratio).Key takeaways from conference call.Th