According to Zhitong Finance APP, Morgan Stanley issued a research report reiterating Meitu's (01357) 'shareholding' rating with a target price of 4.5 HKD. Meitu announced yesterday (the 4th) that it sold 0.031 million ether and 940 bitcoins from the earnings of 2021, cashing out approximately 1.3 billion RMB, with a profit of approximately 0.571 billion RMB.

The report states that the company intends to distribute about 80% of the net proceeds from the above sale as a special dividend, amounting to approximately 0.457 billion RMB or 0.109 HKD per share, yielding a return of 3.8% at current prices. The remainder will be used to expand the business, focusing on subscription-based imaging and design products. The firm believes this move demonstrates Meitu's commitment to its business focus and shareholder return.

Morgan Stanley pointed out that Meitu's share price has long deviated from its fundamental value due to its holding of cryptos, raising questions among long-term value investors about Meitu's operational focus. The sale of all cryptos for shareholder returns and business development proves Meitu's determination to create value, and it is believed that this is a turning point for Meitu's position in the capital markets and in the minds of investors, marking a significant improvement in company management.