Bank of America Securities released a research report, which is expected to$SW (09626.HK) $With fourth-quarter results due to be released in late February, BofA basically maintained quarterly monthly active users (MAU) forecasts of 270 million yuan and 5.8 billion yuan, slightly higher than market expectations.
Bank of America pointed out that the lack of approval of the new game version number continues to put pressure on the growth of the game business. Game revenue growth is expected to slow from 20% to 15% in the fourth quarter, but advertising revenue growth will offset the weak performance of the game. BofA slightly lowered its gross margin forecast to 19 per cent, expected marketing to account for the same share of revenue as in the third quarter, and maintained its fourth-quarter net profit margin forecast at 30 per cent under non-international accounting standards.
BofA lowered its revenue forecast for the first quarter of this year to 5.57 billion yuan, slightly below market expectations, saying that BMO Mile is expected to reach its target of 400m monthly active users by 2023, and expects net user growth between 2022 and 2023 to be similar to that in 2021, reaching more than 60 million.
Assuming that more new games can be launched in the second half of this year, BofA lowered its 2022 revenue growth forecast by 6% to 34%. Due to macro uncertainty, it lowered its 2022 advertising and value-added services growth forecast to 55% and 43%, and its full-year profit margin by 2%. Accordingly, the revenue forecast for this year and next will be reduced by 6% and 8%, and earnings per share forecast by 7% and 16%. Bank of America lowered its target price for beep miles to 769 yuan (originally 932 yuan), still optimistic about the company's long-term user expansion and realization rate, and reiterated its "buy" rating.