09898 Overview

Haitong International Coverage: Haitong International has initiated coverage on WB-SW (09898.HK), giving it an Outperform rating and a target price of HKD107.

Valuation Insights: The report indicates a FY26 P/E ratio of 8 times, which is below the industry average, reflecting Weibo's stable user base and growth rate compared to other internet companies.

Short Selling Data: The short selling amount for WB-SW is reported at $10.15 million, with a short selling ratio of 44.258%.

Market Context: Weibo is currently in a steady development phase, with a stabilizing growth rate, positioning it lower than its peers in the internet sector.

3Q25 Financial Performance: WB-SW's 3Q25 results met lowered forecasts, with a 5% YoY revenue decline and a 20% drop in adjusted net profit, while gross profit margin decreased to 76%.

Outlook and Forecast Adjustments: UBS has slightly reduced its 2025 adjusted net profit forecast by 2% due to a cautious outlook for 4Q25 revenue and a decline in gross profit margin.

Target Price Changes: UBS lowered its target price for WB-SW's US stock from US$14.5 to US$14.2 and for H-shares to $110.4, maintaining a Buy rating.

Dividend Yield Expectation: UBS anticipates an 8% dividend yield for the next year, which is expected to provide downside protection for the share price.

Stock Performance: WB-SW (09898.HK) experienced a slight decline, with a decrease of 0.100 (-0.125%).

Short Selling Activity: The stock saw short selling amounting to $2.73 million, with a short selling ratio of 25.206%.

Quarterly Results: The company announced its 3Q25 results, reporting net revenues of US$442 million.

Year-over-Year Comparison: The net revenues reflect a decrease of 4.8% compared to the same period last year.

CAC Investigation: The Cyberspace Administration of China (CAC) has investigated WB-SW and KUAISHOU-W for disrupting the internet ecosystem, leading both platforms to announce rectification measures.

Rectification Measures: WB-SW has formed a task force to implement strict governance standards for trending topic lists, aiming to enhance its information content management responsibilities.

Company Performance: WB-SW (09898.HK) reported a 1.6% year-over-year increase in net revenue to USD445 million and a 12.3% rise in net profit to USD126 million for the second quarter ending June 2025.

Market Reaction: Following the results announcement, the company's stock surged by 8.4% to HKD89.15, with significant trading volume of 121,300 shares amounting to HKD10.745 million.