[ET Net News Agency, 16 February 2021] Citi Research initiated coverage on Weimob
(02013) with a "buy" rating and a target price of HK$38.
The research house noted that Weimob is a leading SaaS provider of e-commerce and
marketing solutions and a targeted marketing solution provider mainly on WeChat. Citi said
its rating rests on (1) rapidly growing social e-commerce on WeChat, (2) ample
opportunities from digitalization of offline merchants with two improving products, (3) a
solid M&A strategy to improve its products and further penetrate into new verticals, and
(4) a robust targeted marketing segment amid a decent outlook on Tencent's (00700)
advertising segment, clear synergies with SaaS products as well as booming ads demand on
Douyin.
Citi estimate 2020-23 revenue to grow 59%/67%/40%/33% to Rmb2.3bn/3.8bn/5.3bn/7.1bn and
adjusted earnings at -Rmb17mn/+152mn/+388mn/+744mn respectively. (KL)