Jinwu Financial News | According to the Bank of China Securities Research Report, Weibo (09898) 23Q4 net revenue was US$464 million, +3.5% YoY, +5% YoY based on a fixed exchange rate (RMB 7.13 = US$1.00, same below); GAAP operating profit of US$119 million, -25.8% YoY, operating margin 26%, -10.2ppts YoY; GAAP net profit of US$83.23 million, -41.4% YoY; NongAAP net profit of US$76.37 million, YoY: -57.2% YoY. According to the bank, the advertising and marketing business is slowly recovering, and the 2024 Olympic Games are expected to stimulate brand marketing. In addition, Q4 marketing expenses increased significantly year-on-year, and the overall operating profit margin remained stable in 2023.
Driven by the Olympic Games, the bank expects advertising revenue growth in the second half of 2024 to be better than in the first half of the year; revenue recovery in 2023 is slower than the bank's previous expectations, and negative exchange rate effects still exist in the first half of 2024. The bank lowered 2024/25 non-GAAP net profit to US$421/484 million. The net profit from non-GAAP is expected to be $529 million in 2026; corresponding PE for 2024/25/26 is 5.8/5.0/4.6 times. Maintain an increase in holdings rating.