External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Weibo announced 1Q24 results: total revenue decreased by 4% YoY (or flat YoY on a constant currency basis) to US$395mn, in line with consensus/our estimates; non-GAAP net income was down by 4% YoY to US$107mn, 24/27% ahead of consensus/our estimates, thanks to the better-than-expected control in opex (-10% YoY).</li><li>We forecast advertising revenue to remain flattish YoY in 2Q24E, primarily due to the decline in ad revenue from the cosmetics and beauty vertical.</li><li>That said, management expected ad business to recover in 2H24E, supported by the bottoming out of consumption sentiment and the Olympic event. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weibo announced 1Q24 results: total revenue decreased by 4% YoY (or flat YoY on a constant currency basis) to US$395mn, in line with consensus/our estimates; non-GAAP net income was down by 4% YoY to US$107mn, 24/27% ahead of consensus/our estimates, thanks to the better-than-expected control in opex (-10% YoY).We forecast advertising revenue to remain flattish YoY in 2Q24E, primarily due to the decline in ad revenue from the cosmetics and beauty vertical.That said, management expected ad business to recover in 2H24E, supported by the bottoming out of consumption sentiment and the Olympic event. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weibo (WB US) - Ad Revenue Growth Recovery Still Takes Time

<ul><li>Weibo reported 4Q23 results on 14 Mar: total revenue grew by 3% YoY (or +5% YoY on a constant currency basis) to US$464mn, vs consensus/our estimate of US$454/458mn.</li><li>Non-GAAP operating income declined by 4% YoY to US$146mn in 4Q23, 7% ahead of consensus, mainly thanks to the stringent control in product development expenses.</li><li>For FY23, total revenue declined by 4% YoY to US$1.76bn, with non-GAAP OPM up by 1ppt YoY to 33.6% on enhanced operating efficiency. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weibo reported 4Q23 results on 14 Mar: total revenue grew by 3% YoY (or +5% YoY on a constant currency basis) to US$464mn, vs consensus/our estimate of US$454/458mn.Non-GAAP operating income declined by 4% YoY to US$146mn in 4Q23, 7% ahead of consensus, mainly thanks to the stringent control in product development expenses.For FY23, total revenue declined by 4% YoY to US$1.76bn, with non-GAAP OPM up by 1ppt YoY to 33.6% on enhanced operating efficiency. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weibo (WB US) - Weathering a Challenging FY24

<ul><li>Weibo announced 3Q23 results on 9 Nov: total revenue declined by 3% YoY (or grew by 2% YoY on a constant currency basis) to US$442mn, in line with consensus/our estimate.</li><li>Non-GAAP net income was up 15% YoY to US$137mn in 3Q23, which is in line with our estimate but beat consensus by 6%, primarily due to effective execution of expense control.</li><li>Macro uncertainty continues to weigh on advertisers’ sentiment and their ad budget. Weibo’s relatively high exposure to consumption-related verticals further drags its ad revenue recovery pace. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weibo announced 3Q23 results on 9 Nov: total revenue declined by 3% YoY (or grew by 2% YoY on a constant currency basis) to US$442mn, in line with consensus/our estimate.Non-GAAP net income was up 15% YoY to US$137mn in 3Q23, which is in line with our estimate but beat consensus by 6%, primarily due to effective execution of expense control.Macro uncertainty continues to weigh on advertisers’ sentiment and their ad budget. Weibo’s relatively high exposure to consumption-related verticals further drags its ad revenue recovery pace. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weibo (WB US) – Soft Consumption Weighs on Ad Recovery

<ul><li>Weibo reported 2Q23 results on 24 Aug: total revenue decreased by 2% YoY (+5% YoY on a constant currency basis) to US$440mn, in line with consensus estimate of US$439mn.</li><li>Non-GAAP net income grew by 15% YoY to US$126mn in 2Q23, ahead of consensus estimate of US$120mn, mainly due to effective expense control.</li><li>Looking ahead in 3Q23E, the recovery pace of ad demand was slower than expected (especially in July), due to the weak consumption sentiment. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weibo reported 2Q23 results on 24 Aug: total revenue decreased by 2% YoY (+5% YoY on a constant currency basis) to US$440mn, in line with consensus estimate of US$439mn.Non-GAAP net income grew by 15% YoY to US$126mn in 2Q23, ahead of consensus estimate of US$120mn, mainly due to effective expense control.Looking ahead in 3Q23E, the recovery pace of ad demand was slower than expected (especially in July), due to the weak consumption sentiment. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Weibo (WB US) – Expect mild recovery in 3Q23E

Thematic (Sector/Industry)

<ul><li>Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.</li><li>From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;</li><li>2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.com</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our previous expectation.From a full-year perspective, given the rate cut cycle has not yet started and liquidity remains tight, we suggest focusing on: 1) companies capable of boosting shareholder returns or maintaining decent returns, supported by solid fundamentals (strong competitive advantages, steady growth in core business, and stable profitability) and committed to enhancing shareholder returns (also depends on management's willingness), such as Alibaba, Tencent, and NetEase;2) companies whose new businesses have significant market potential and are poised to bring considerable capital gains in the long run, particularly from overseas expansion and AI-related initiatives, such as Pinduoduo, Tencent, Alibaba, and Trip.comContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Internet - 1Q24 recap & our three stock-picking ideas

China

JOYY Inc. operates a global social media platform. The Company offers platform which enables users to interact with each other in real time through online live media by creating, sharing, and enjoying a vast range of entertainment content and activities. JOYY serves customers in China.

Beijing TRS Information Technology Company Limited develops and markets software and technology services for unstructured data management. The Company provides software products that are enterprise search, content management and text mining.

Focus Technology Co Ltd. provides business-to-business (B2B) e-commerce solutions. The Company provides the supply and the demand sides for the release, search and management services of the transaction information.

Hangzhou Shunwang Technology Co., Ltd. develops and sells Internet entertainment networking platforms.  The Company's products provide safety management, system maintenance service, and entertainment content update service.

Hangzhou Shunwang Technology A (300113 CH)

Shanghai Ganglian E-Commerce Holdings Company Limited provides market information and B2B e-commerce services for steel and steel-related industries. The Company provides market information, research services and also offers business promotion to customers.

Hubei Century Network Technology Co. Ltd. provides internet content and service aggregation platforms. The Company delivers music, games, and other related products.

INESA Intelligent Tech Inc. operates in the IT industry. The Company designs and manages cloud servers and big data applications for businesses. INESA Intelligent also manufactures electronic components.

Longmaster Information & Technology Company Limited provides community-based phonic value-added services. The Company's main product is a large-scale telephone phonic social and entertainment platform.

Longmaster Information&Technology (300288 CH)

21Vianet Group, Inc. provides carrier-neutral Internet data center services. The Company hosts its customers' servers and networking equipment, as well as provides interconnectivity and managed network services to enable customers to deliver data across the Internet. 21Vianet conducts business in Beijing, China.

Beijing Sinnet Technology Company Limited provides customers with broadband access services, IDC and its value-added services, and other internet integrated services. The Company's core business are broadband access services, IDC and its value-added services.

mixi, Inc. operates community style website, mixi.  The Company sells advertising spaces on its website.  mixi also runs online recruiting services for IT related positions.

DeNA Co., Ltd. operates social media site, auction and shopping web site such as Mobage-town and Bidders.  DeNA also provides mobile-related services such as mobile game and community site.

Gogo Inc. provides in-flight connectivity systems and services. The Company offers online aircraft systems, wireless digital entertainment and other services in the commercial and business aviation markets.

Shutterstock Inc. operates a global marketplace for commercial digital imagery. The Company's online marketplace provides a freely searchable library of commercial digital images that our users can pay to license, download and incorporate into their work.

SMS CO.,LTD. is a website operator regarding elderly care.  On its websites, the company provides a variety of information contents related to employment placements for senior care assistants and doctors, as well as medical and nursing qualifications.

Megaport Limited operates as a software-based elastic connectivity provider. The Company develops an elastic connectivity platform that provides customers interconnectivity and flexibility between other networks and cloud providers connected to the platform. Megaport serves customers worldwide.

Cars.com Inc. operates an online automotive platform. The Company offers new and used vehicle listings, expert and consumer reviews, research tools, and other information which helps shoppers to buy, sell, and service their vehicles. Cars.com serves customers in the United States.

SUNeVision Holdings Limited, through its subsidiaries, operates Internet services centers and Information Technology (IT) facilities.  The Company also designs and installs SMATV, structural cabling and security systems as well as provides system development, solutions, and management services.  In addition, Sunevision invests in properties.

QuinStreet Inc. specializes in vertical marketing and media on the Internet. The Company focuses on clients in the education and financial services industries, as well as has a presence in the home services, business-to-business, or B2B, and healthcare industries.

Just Dial Ltd. operates a local search engine that provides comprehensive updated information. The Company offers a search engine that includes a variety of categories such as movies, hotels and resorts, taxis and car rentals, insurance, bars, and nightclubs. Just Dial markets its search engine to users throughout India.

Weibo Corp is a social media platform for people to create, distribute and discover Chinese-language content.  The Company offers users public self-expression in real time with a powerful platform for social interaction, as well as content aggregation and distribution.

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Weibo Corp (WB US)

Weibo (WB US) - Ad Revenue Growth Recovery Still Takes Time

We forecast advertising revenue to remain flattish YoY in 2Q24E, primarily due to the decline in ad revenue from the cosmetics and beauty vertical.

CMB International

Weibo (WB US) - Weathering a Challenging FY24

Weibo reported 4Q23 results on 14 Mar: total revenue grew by 3% YoY (or +5% YoY on a constant currency basis) to US$464mn, vs consensus/our...

CMB International

Weibo (WB US) – Soft Consumption Weighs on Ad Recovery

Weibo announced 3Q23 results on 9 Nov: total revenue declined by 3% YoY (or grew by 2% YoY on a constant currency basis) to US$442mn, in line with...

CMB International

Weibo (WB US) – Expect mild recovery in 3Q23E

Weibo reported 2Q23 results on 24 Aug: total revenue decreased by 2% YoY (+5% YoY on a constant currency basis) to US$440mn, in line with consensus...

CMB International

Internet - 1Q24 recap & our three stock-picking ideas

Year to date, the internet sector has pulled back after rapid rallies buoyed by improved sentiment and short-term fund inflows, in line with our...

CMB International

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