I'm LongbridgeAI, I can summarize articles.Goldman Sachs cut Meitu's target price to HKD10.8 from HKD12.3 but maintained a Buy rating. The broker cited strong subscription growth driven by AI productivity tools and overseas markets, with H1 revenue and profit in line with guidance. However, earnings forecasts for 2026-2028 were lowered by 6-7% due to weaker traditional product revenue and margin pressure. Future growth is expected to be fueled by AI-driven tools and expansion into regions like the US, Europe, and Southeast Asia.
G Sachs issued a research report stating that MEITU (01357.HK) -0.395 (-9.360%) Short selling $50.48M; Ratio 30.525% 's AI productivity tools and overseas markets supported subscription growth. Its subscription rate in 1H26 rose 1 ppt YoY to 6.5%, mainly driven by growth in overseas paying users with higher ARPU. Interim revenue and net profit were broadly in line with guidance. Looking ahead to 2H26, the broker expected AI-driven productivity tools and overseas market expansion, including S America, the US, SE Asia, Japan and Europe, to become key growth drivers, and forecast 2H26 revenue to grow 24% YoY.
Compared with general-purpose models, the broker believed MEITU's AI products focus on specific scenarios and clear user groups, with stronger willingness among users to pay, while customized product strategies for different regions and user groups would support higher subscription rates. Based on the interim results performance, the broker lowered its earnings forecasts for MEITU for 2026 to 2028 by 7%, 6% and 7%, respectively, to reflect weaker revenue from traditional products and pressure from changes in product mix leading to lower gross margin. However, it remained positive on the growth potential of AI-native products, maintained the Buy rating, and cut the TP from HKD12.3 to HKD10.8.(gc/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-09-14 16:25.)