1、M IdeaMeitu Inc|Asia PacificIs AI Eating Apps?Its the Last Mile that MattersWe think Meitus growth trajectory is intact,unaffected by Nano Banana or other AI models.Instead,we believe each evolution of AI models will help Meitu enhance its AI features.Reiterate OW.Exhibit 1:Meitu share price and maj

2、or AI image/video breakthroughSource:Factset,Morgan Stanley ResearchMeitu Inc:AI Try-on App Launched(28 Aug 2025)Meitu Inc:Clear Strategy to Bring Growth-Hong Kong NDR Takeaways(25 Aug 2025)Morgan Stanley Asia Limited+Lydia LinEquity Analyst Lydia.L +852 2239-1572 Yang LiuEquity Analyst Yang.L +852

3、2239-1911 Meitu Inc(1357.HK,1357 HK)Greater China IT Services and Software|ChinaStock RatingOverweightIndustry ViewCautiousPrice targetHK$15.70Up/downside to price target(%)33Shr price,close(Aug 29,2025)HK$11.8252-Week RangeHK$12.56-2.02Sh out,dil,curr(mn)4,609Mkt cap,curr(mn)Rmb49,820Avg daily trad

4、ing value(mn)HK$506Fiscal Year Ending12/24 12/25e 12/26e 12/27eEPS(Rmb)*0.130.210.270.40Prior EPS(Rmb)*-Revenue,net(Rmb mn)3,3414,0215,1206,771EBITDA(Rmb mn)5841,0401,5042,131ModelWare net inc(Rmb mn)5869521,2571,840P/E21.152.339.627.1P/BV2.59.68.16.6ROE(%)14.318.924.130.0EV/EBITDA17.145.130.420.6FC

5、F yld ratio(%)*4.02.23.14.6Unless otherwise noted,all metrics are based on Morgan Stanley ModelWare framework*=Based on consensus methodologye=Morgan Stanley Research estimatesMorgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research.As a result,investors should

6、be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research.Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.For analyst certification and other important disclosures,refer to the Dis