HK Stock Market Move | MEITU (01357) rises over 6%; Q3 paid subscription users increased by approximately 1.39 million net in a single quarter, and there is still room for growth in domestic consumer-end paid conversion.

MEITU (01357) rose over 6%, up 6.39% as of press time, at HK$4.33, with turnover of HK$383 million. On the news front, MEITU recently released its 2026Q3 business update announcement. Sealand noted that as of September 2026, MEITU's paid subscription users reached 19.83 million, a net increase of approximately 1.39 million in a single quarter, with paid subscription users from international markets continuing to grow faster than those from the Chinese mainland market. In 2026Q3, paid subscription users from productivity applications increased 18.3% year-on-year to 2.39 million. As of September 2026, ARR for AI productivity applications was RMB655 million, up 40.1% year-on-year, with the ARR of Kaipai and Vmake Labs both growing over 100% year-on-year. Sealand believes that MEITU, as one of the domestic companies with relatively high monetization of AI applications, is favored in the long term for both its lifestyle and productivity scenarios flourishing under AI empowerment, as well as the new commercial space brought by subsequent Agents relying on computing power consumption for paid offerings. JP Morgan stated that MEITU's consumer-end paid conversion still has room to rise in China and a longer runway overseas, with paid subscription users in Q3 recording the largest quarterly increase in a year; although AI entails token costs, revenue growth has been sufficient to cover them. On the B-end side, management treats each AI product as a cost that must be earned back, and has closed about half of its innovation studios.