Goldman Sachs Meitu (1357.HK): 1Q26 Productivity Tools Revenues +45% YoY; AI Agent Integration to Drive User Demand; Buy
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Goldman Sachs maintains a Buy rating on Meitu (1357.HK), highlighting that first-quarter 2026 productivity tools revenue grew 45% year over year. The firm views this performance as evidence of robust demand for AI-related products and expects that AI agent integration will further enhance the user experience and drive future demand.
The report emphasizes that overall revenue growth remains solid, with AI-related business serving as the primary growth engine. Meitu's strategic positioning in AI, particularly its agent functionality, is expected to improve both user stickiness and paid conversion rates. The firm believes these AI capabilities give the company a first-mover advantage. While Goldman did not specify a target price in the report, it underscores the company's significant growth potential and long-term prospects.
The investment thesis follows a clear logic: the 45% year-over-year revenue increase in productivity tools validates strong AI product demand. Integrating AI agents should further enrich the product offering, boosting user engagement and monetization. This revenue trajectory appears sustainable, supporting the maintained Buy rating. Key areas to monitor include subsequent quarterly user growth, paid conversion metrics, and the company's ongoing AI research investments. Competitive intensity remains a risk, though Meitu's differentiation is notable.
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