Possibilities:

- Everyone thinks she's ugly but he thinks she's beautiful.
- You think you are ugly but he doesn't think so.
- God thinks you are beautiful.
- Someone asked their friend what some guy, who they like, thinks about them.

This could be a feminist statement. Men look. Women are looked at. The man in this statement makes the judgement. It could be a gay statement, the beautiful one could also be a man. It could be a religious statement but there's something sincere about this statement, isn't there? It wasn't from God, it was from a person's heart. It was made by someone but it is not a mark, an "X." It has nothing stating "I am here. I exist" but rather it's effort is selfless. It is for the care of someone else. If it said "He thinks you are beautiful" it would be a confirmation to "Am I beautiful?" . "He thinks you are beautiful" is very third person. "He thinks you're beautiful" is direct, like he is talking directly to someone or we take on the role of the viewer, he is talking to us. It makes me say "I am beautiful." If it said "I think you're beautiful" it would be from the author, but it's not. Someone else, someone we do not know thinks someone else, we do not know either, is beautiful and that is what makes it beautiful.