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<Research>CLSA Believes MEITU's DesignKit Still Has Upper Hand Over Other AI Image Generation Tools
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CLSA has issued a report attributing MEITU (01357.HK)'s stock price volatility to the AI image generation tools launched by the company's competitors, including Google's Nano Banana, ByteDance's Seedream 4.5, and KUAISHOU-W (01024.HK)'s Kling o1.

That said, CLSA still believes MEITU can achieve a net profit of RMB950 million this year as its tests showed that MEITU's DesignKit maintained a competitive advantage in pricing, command-image consistency, integrated workflow, and editability among AI image generation tools.

CLSA has given MEITU a target price of HKD14.1 and an Outperform rating.
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