Equity Analysis /
Hong Kong

HK : Weimob Inc - 1H22 results impacted by macro factors; recovery in recent months

    Mark Po
    Mark Po

    Research Analyst

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    CGS-CIMB
    17 August 2022
    Published byCGS-CIMB

    Weimob’s 1H22 results were impacted by macro factors. We believe that the most challenging period for Weimob is behind it, as its operations have been recovering in recent months. We have a lower SOTP-based target price of HK$7.55, mainly because we lowered our target multiples to reflect slower-than-expected growth, given macro factors. Weimob’s share price was under pressure after its 1H results announcement. Although market sentiment is turning conservative, we believe that Weimob’s B2B business is on the recovery track, and we reiterate our ADD rating.