In-line 2021 results; toB exposure more resilient
? 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.