According to the Intelligence Finance APP, Everbright Securities released a research report stating that Vobile Group (03738) provides efficient and professional solutions to customers through subscriptions and value-added services. Considering the company's technological barrier in the field of copyright protection, the rating is maintained as 'buy'. The company achieved revenue of HKD 1.181 billion in 24H1, gross profit of HKD 0.504 billion, and gross margin increased to 42.7% on a year-on-year basis. This is mainly due to the implementation of a high-quality development strategy in the second half of '23 and adjustments to some low-margin businesses. Net income attributable to owners of the parent company was HKD 0.041 billion, a year-on-year increase of 42.2%, and adjusted net income was HKD 0.064 billion, corresponding to an adjusted net margin of 5.4%.

The main points of view of Everbright Securities are as follows:

Steady growth in domestic and overseas business, and steady progress in cooperation.

In terms of business segments, subscription business achieved revenue of HKD 0.545 billion, a year-on-year increase of 16.8%, and value-added business achieved revenue of HKD 0.635 billion, a year-on-year increase of 18.5%.

In terms of regions, 1) overseas revenue was HKD 0.576 billion, of which the USA market generated HKD 0.572 billion in revenue, a year-on-year increase of 30.0%; 2) mainland China generated HKD 0.605 billion in revenue, a year-on-year increase of 8.0%.

Acceleration of domestic business expansion in 24H1:

1) The cooperation project with China Central Broadcasting and Television General Station's "Copyright Protection and Trading Platform" has completed the first phase of the product version and entered the trial operation stage; 2) Deepen the cooperation with ant group co., ltd., and build a copyright ecosystem with its underlying infrastructure capabilities; 3) Provide ecological copyright protection services for the Chinese copyright chain based on API delivery service capabilities; 4) Cooperate with China Film Co., Ltd. to realize the aggregation of film assets; 5) Help Hubei Daily and other newspaper groups to conduct online image library transactions, further expanding news media customers.

The significant achievements of cultural expansion overseas: 1) Work with Mango TV to achieve coverage on multiple overseas platforms, expand overseas business and localize operations in Vietnam and Thailand; 2) Cooperate with television stations in multiple provinces and cities in China to realize the landing and monetization of high-quality video content in overseas markets; 3) Create the intelligent creation and AIGC overseas cloud platform, and cooperate with China Mobile to realize the landing and commercialization of technology services overseas.

The customer scale and the volume of managed content assets continue to grow: As of 24H1, the company has 227 content customers, 139 platform customers, and a total of 13 more customers compared to the end of 23; 3.43 million active assets on social media platforms, and 2.57 million hours of managed content on the film and television payment platform.

Seize the strategic opportunities of the AIGC era and expand AIGC field service capabilities.

1) Conduct close cooperation in technology research and development with well-known universities in the United States, mainland China, and Hong Kong, continuously improving technological capabilities. 2) Communicate and cooperate with the world's leading chip and platform companies to jointly address the increasingly complex copyright challenges in the AIGC field. 3) Launch a diverse range of watermark technology solutions and provide efficient, low-cost solutions through commercial deployment. 4) Continuously upgrade content recognition and rights protection technology, significantly reducing the time for content rights confirmation through the enhanced application and deployment of AI algorithms.