HK Stock Market Move | Meitu (01357) rises by over 3% again, with continued acceleration in growth of paid users for Meitu, and an increase in the proportion of high-gross-margin businesses such as subscriptions.

MEITU (01357) rose by over 3%, as of the time of publication, it rose by 3.08% to 6.03 Hong Kong dollars, with a turnover of 194 million Hong Kong dollars. Morgan Stanley released a research report stating that in the first quarter of 2025, the growth of paid users of Meitu continued to accelerate, with a growth rate in January-April surpassing the full year of 2024. Among them, the productivity tools Meitu Design Room and Opener performed strongly. The bank stated that the management of Meitu is confident that the penetration rate of paid products in the life scenario and productivity tools will reach 10%-15% and 20%, respectively. EB SECURITIES pointed out that as of December 24th, 2024, the company's paid subscription user base was 12.61 million, with a net increase of 3.5 million subscription users compared to the previous year (a net increase of 290,000 subscription users per month), and the end-of-period subscription penetration rate reached 4.7%; the bank expects that the net increase of monthly subscription users for all products in Q1 2025 will exceed 300,000. The bank believes that domestic AI and original applications are still in the initial stage, Meitu has a solid foundation in the life scenario products, and can also capture a certain market share in productivity scene products. Considering the increase in the proportion of high-margin businesses such as subscriptions, the bank slightly raised its adjusted net profit forecast for 2025-2026 to RMB 850 million and RMB 1.14 billion (compared to the previous forecast of +2% / +3%), and added a forecast for adjusted net profit for 2027 to RMB 1.42 billion.