China's Meitu jumps on robust earnings outlook

Meitu

22/01/2024 02:27

** Shares of Meitu Inc  1357.HK  jump 7.4% to HK$2.90, their
biggest intraday pct rise since Dec 28
    ** Stock of the Chinese online advertising and internet
value-added services provider hit its highest since Jan 17, and
is the biggest pct gainer in Hang Seng sub-index on information
technology firms  .HSCIIT  and second-biggest in Hang Seng
Composite Index  .HSCI  
    ** Meitu expects to record an adjusted net profit of about
330 mln-370 mln yuan ($45.9-$51.5 mln) for 2023, up 200-230% YoY
from 111 mln yuan profit in 2022, due to rapid growth in revenue
from the photo, video and design products business
    ** Jefferies keeps "buy" rating on the stock after Meitu
released the positive profit alert, supported by fast growth of
subscription rates for its AI offerings and globalization
strategies, and the firm's long-term fundamental is intact
    ** Hang Seng sub-index tracking information technology firms
 .HSCIIT  drops 1.7%, Hang Seng Composite Index  .HSCI  falls 
1.5% and Hang Seng Index  .HSI  eases 1.3%
    ** Meitu stock down 21.9% YTD

    ($1 = 7.1912 yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))