Bank of America: Maintains "Buy" rating and target price of HKD 11.3 for MEITU, with overseas higher ARPU and payment rate expected to drive revenue growth

Bank of America maintains a "Buy" rating and a target price of HKD 11.3 for MEITU, expecting a year-on-year adjusted net profit growth of 60%-66% in 2025. The growth in performance is mainly driven by rapid growth in product revenue and operational leverage, particularly strong growth in paid users in overseas markets. Bank of America believes that MEITU's international expansion has enhanced the attractiveness of its products, and future revenue is expected to rise further. Despite market concerns about artificial intelligence leading to a stock price correction, Bank of America believes that MEITU has strong business defensive capabilities to seize growth opportunities driven by artificial intelligence