Weibo-SW(9898.HK): 2Q24 Performance Review Advertising continues to be under pressure. Cost reduction and efficiency improvement release profits.
Since 2021, weibo has made positive progress in the ecological aspect of vertical field, with the scale of vertical content continuing to grow and accounting for 40%. It has achieved results in supporting traffic in the vertical field, and is expected to enhance user activity and content quality.
WEIBO CORP(9898.HK):2Q24 PROFIT BEAT;COMMITTED STRATEGIES TO AMPLIFY SOCIAL EDGES
Dah Sing Bank International lowered the target price of weibo (09898.HK) to HKD 64, core strategy remains unchanged.
Bank of China International has released a research report stating that weibo (09898.HK) recorded a Q2 revenue of 0.438 billion USD, a 1% decline year-on-year, in line with market expectations, and a 1% increase when calculated at the same exchange rate. During the period, core advertising business revenue decreased by 3%, with a decline of 1% excluding exchange rate impact. The bank pointed out that the proportion of weibo's daily and monthly active users improved to 43.9% during the period, and the adjusted net profit margin reached 28.8%, reflecting the company's good execution in terms of high-quality users, content, and operational strategies. Its core strategy remains unchanged and is expected to further amplify its advantages in the social platform. However, the macro environment remains weak.
China's Ministry of Commerce: Imposing tariffs by Canada will disrupt the stability of the global industry chain and supply chain, and we will defend the legitimate rights and interests of Chinese enterprises.
The Canadian government announced that it will impose a 100% tariff on electric vehicles manufactured in China, as well as a 25% tariff on Chinese steel and aluminum. A spokesperson for the Chinese Ministry of Commerce stated that Canada has disregarded the facts and the rules of the World Trade Organization, ignored China's repeated strong representations, and proceeded in defiance of opposition and dissuasion from many sides. China is strongly discontent and firmly opposes this. The spokesperson pointed out that China has repeatedly emphasized that the development of China's electric automobile industry is based on its own comparative advantages and is the result of open competition. China's electric vehicles are welcomed by global users, including Canadian consumers, and also contribute to global efforts to address climate change and green transformation.
Daiwa lowered the target price of Weibo (WB.US) to $7.5, and the second quarter performance met expectations.
Morgan Stanley's report states that Weibo (WB.US) met expectations in the second quarter, but expects advertising revenue in the second half of the year to decline by 4 to 5% when calculated in renminbi. The skincare and cosmetic vertical markets continue to be drag factors. Boosted by the Olympics, business performance in the third quarter is expected to be slightly better than the fourth quarter. The bank expects non-GAAP operating profit to decline by 9% in the second half of the year, citing operating expenses, Olympics-related sales and management, and investments. Morgan Stanley lowered Weibo's revenue forecast for 2024 to 2026 by 1 to 5%, reflecting weakened consumer sentiment and significant competitive threats from short video platforms, among other factors. Sales and marketing expenses.
CICC: Maintains weibo-SW (09898) 'Outperform' rating, target price cut to HK$93.6.
Jianyin International has lowered the profit forecast for Weibo-SW (09898) in 2025 and 2026 by 3% and 5% respectively.