Equity Analysis /
Hong Kong

HK : Weimob Inc - In-line 2021 results; toB exposure more resilient

    Mark Po
    Mark Po

    Research Analyst

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    CGS-CIMB
    30 March 2022
    Published byCGS-CIMB

    Weimob reported its 2021 results earlier; reported revenue was lower than our expectation, but the bottom line (net loss) was in line. Management guided resilient growth in both its subscription solutions business and merchant solutions. We have a lower SOTP-based target price of HK$12.82, mainly because we lowered our target multiples to reflect a low-risk appetite for the Chinese Internet sector. Although market sentiment is turning conservative, we believe that Weimob’s toB business remains stable vs. its toC peers, and we maintain our ADD rating.