Gf sec released a research report stating that it maintains a 'buy' rating on Weibo-SW (09898), with estimated company revenue reaching $1.76 billion and $1.85 billion in 2024-25, increasing by 0.2% and 4.8% respectively. Adjusted net income attributable to owners in 2024-25 is expected to be $0.481 billion and $0.49 billion, increasing by 6.7% and 2.0% respectively, with a fair value of HK$92.31. Weibo demonstrated itself as a topical social media platform during the Olympics, continuously attracting advertisers' budgets due to its event-driven nature. The company is intensifying the upgrade of new product launch marketing products and the decline in the beauty category is also close to bottoming out.

GF Securities' main points are as follows:

The company released its 24Q3 financial report:

24Q3 revenue reached $0.464 billion, YoY/QoQ +5%/+6%, surpassing institutional expectations of $0.437 billion (exceeding 6%). Non-GAAP net income attributable to owners was $0.139 billion, YoY/QoQ +2%/+10%, surpassing expectations of $0.12 billion (exceeding 16%). 24Q3 gross margin reached 80%, up 1.4 percentage points YoY and 0.6 percentage points QoQ. Sales expenses in 24Q3 were $0.123 billion, up 12% YoY and 8% QoQ. Research and development expenses in 24Q3 were $80.41 million, YoY/QoQ -3%/+12%. Administrative expenses were $27.3 million, up 26% YoY and 2% QoQ.

In 24Q3, the advertising industry saw growth in customer numbers and placements being driven by the summer Olympics hotspots, with good performance in the food & beverage and apparel categories.

24Q3 advertising revenue was $0.399 billion, up 2% YoY and 6% QoQ, exceeding the consensus expectation of $0.377 billion. The performance of overall advertising exceeded expectations in the third quarter due to the boost from summer Olympic-themed marketing, with higher overall ad spending during the summer Olympics. Both the total number of advertising clients and those related to the Olympics increased compared to previous large-scale events. In terms of industry performance, the FMCG sector including food & beverage and apparel, such as sporting goods, showed good growth. 24Q3 VAS revenue was $65.87 million, up 25% YoY and 5% QoQ, surpassing the consensus expectation of $57.66 million. Growth was mainly driven by membership business, with a relatively stable subscriber/DAU ratio and increasing ARPU.