Goldman Sachs: First issued a "buy" rating on Meitu with a target price of HK$16.

Goldman Sachs released a research report stating that they are initiating coverage on Meitu with a "buy" rating for the first time, with a target price of HK$16. The advent of generative AI has driven Meitu to upgrade from a beauty tool to an AI photo and video creation and editing application, expanding its market from consumer entertainment to productivity tools for enterprises, thereby boosting growth in monthly active users, conversion rate, and average revenue per user. Goldman Sachs predicts that Meitu's revenue will achieve a compound annual growth rate of 29% from 2025 to 2030, with the share of enterprise/productivity revenue expected to reach 44% by 2030; the global AI video and image creativity market is forecasted to grow at a compound annual growth rate of 44% from 2025 to 2030, reaching $39 billion, and Meitu's global market share in AI video/image is projected to rise to 2% and 17% in 2030, respectively.