Haitong International initiates coverage on Weibo with an "Outperform" rating and a target price of 107 yuan

Haitong International published a report, initiating coverage on Weibo-SW (09898.HK). Considering that Weibo's user base and usage time have stabilized, the platform has entered a steady development phase, with growth rates tending to stabilize, which is relatively low compared to other comparable internet companies. Based on this, it is given a valuation multiple below the industry average, with a fiscal year 2026 price-to-earnings ratio of 8 times and a target price of 107 yuan, rating it as "outperform the market."

The report indicates that Weibo's third-quarter performance is mixed, with total revenue of 440 million USD, a year-on-year decline of 5% and a quarter-on-quarter decline of 1%, in line with market expectations after the downward revision in late October. Online advertising revenue decreased by 6% year-on-year in USD terms and by 5% year-on-year in RMB terms; value-added service revenue was 66.9 million USD, an increase of 2% year-on-year. Adjusted net profit was 110 million USD, exceeding expectations by 3%, with the adjusted net profit margin 1 percentage point higher than market expectations; the adjusted operating profit margin was 30%, down 6 percentage points both quarter-on-quarter and year-on-year