By Tracy Qu
Shares of Chinese photo-editing app Meitu rose sharply in Hong Kong after a solid business update.
The stock jumped 16% to 4.86 Hong Kong dollars, equivalent to 62 U.S. cents, by midday, on track for its best day in nearly a year.
The company earlier Wednesday said first-quarter revenue from its core photo, video and design business rose 34%, while its other businesses were stable overall. Artificial-intelligence credits consumed by users climbed 59% in March, compared with December last year, it said.
As of March, Meitu's annual recurring revenue for AI-driven productivity applications was about 580 million yuan, equivalent to US$84.9 million, up 56% from a year earlier.
"The uplift in AI credit consumption indicates growing user engagement with AI-driven features, which leads to increased demand and usage," Jefferies said in a note. The U.S. bank reiterated its buy rating and HK$7.00 target price on the stock.
Write to Tracy Qu at tracy.qu@wsj.com
(END) Dow Jones Newswires
05-06-26 0119ET
