Jingwu Financial News | morgan stanley issued a report stating that meitu (01357) showcased its three generative AI driven products at the investor day: DesignKit, Action, and MOKI. The bank anticipates that in 2024, the flagship product DesignKit will contribute approximately 0.2 billion yuan of domestic revenue, which is double that of 2023, and management believes this is a highlight moment for a product release after one and a half years. The product has a gross margin of 60-70%, and demand is better than expected.

The bank indicated that investors are currently very focused on meitu's overseas expansion, and management expects that the overseas market will be the main focus for selling driven products. Compared to overseas peers, meitu believes its advantages lie in rapid iteration capabilities, strong product management, and depth in specific verticals (starting from e-commerce). Compared to peers like Capcut, which require ultra-large scale cloud computing services, meitu believes its advantages are high flexibility, ease of use, and independence from large platforms.

The bank sets the company's target price at 4.5 HKD and maintains a 'shareholding' rating.