Credit Suisse: MEITU's adjusted profit guidance median last year met expectations, maintaining a "Buy" rating

The research report from Jefferies indicates that MEITU (01357.HK) has released a forecast for its financial performance in 2025, guiding that the Non-IFRS adjusted profit attributable to shareholders will record a year-on-year growth of 60% to 66%; this median forecast is in line with market consensus.

Jefferies stated that the aforementioned growth is primarily driven by the rapid revenue growth of core businesses such as photo, video, and design products due to a significant increase in global paying users, the growth rate of overseas users surpassing that of the Chinese market, and the gross profit growth rate outpacing the growth rate of operating expenses, leading to operational leverage effects; it has given the group a "Buy" rating with a target price of HKD 12.5 for H shares; and expects MEITU to capitalize on the long-term potential of AI GC productivity tools