Lower 1H21 results with higher-than-expected costs
■ Weimob reported its 1H21 results; yoy top-line growth was higher than our
expectation, while yoy bottom-line growth was lower than we expected.
■ We have a lower SOTP-based target price of HK$17.24, 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.