Brief TMT & Internet: 58.com (WUBA): Weak Membership Growth Suggests More Volatile Performance, 17% Downside and more

In this briefing:

1. 58.com (WUBA): Weak Membership Growth Suggests More Volatile Performance, 17% Downside

1. 58.com (WUBA): Weak Membership Growth Suggests More Volatile Performance, 17% Downside

* We believe that the stagnancy in membership was due to the new competitor Ke.com and will make total revenues more volatile in the future.

* We assume total revenues will slow down, but the operating margin will be stable in 2019.

* We compare WUBA’s expected P/E for 2019 with other vertical platforms in China and conclude 17% downside.