Group 1: Private Economy Promotion Law - The draft of the Private Economy Promotion Law has been submitted for the second review, aiming to address key concerns of private enterprises, including prohibiting illegal fees and fines against them [1][2] - The law reflects a social consensus on the importance of private economy and aims to boost confidence by providing substantial regulations for the protection of private enterprises [2] Group 2: Real Estate Market in Hangzhou - Hangzhou's recent land auction saw an average premium rate of 45.6%, with significant interest from developers, indicating a strong recovery in the real estate market [3][4] - The increase in housing transactions, both new and second-hand, suggests a growing market confidence, supported by favorable policies and strong demand for quality properties [4] Group 3: Baidu's Acquisition of YY Live - Baidu has completed the acquisition of YY Live for approximately $2.1 billion, significantly lower than the initial offer, reflecting changes in the live streaming industry [5][6] - The acquisition aims to fill a gap in Baidu's live streaming business and enhance its monetization channels, despite challenges faced by YY Live in recent years [6] Group 4: iQIYI's Financial Performance - iQIYI reported a revenue decline of 14% year-on-year for Q4 2024, marking its first quarterly loss since Q1 2022, indicating pressure on its business model [7][8] - The platform's strategy of restricting user access to content has drawn criticism, highlighting the challenges faced in user growth and retention amid fierce competition [8] Group 5: Apple CEO Tim Cook's Compensation - Tim Cook's total compensation for 2024 is set at $74.61 million, an 18% increase from 2023, primarily driven by stock awards linked to Apple's performance [9][10] - Apple's strong market position and consistent growth have justified the high compensation, reflecting a strategy to align executive pay with long-term shareholder value [10] Group 6: Hong Kong Disneyland's Financial Recovery - Hong Kong Disneyland reported its first profit since 2015, with a net profit of HKD 838 million, driven by a significant increase in visitor numbers and spending [11][12] - The recovery is closely tied to the overall revival of Hong Kong's tourism sector, aided by the easing of travel restrictions and new attractions [12] Group 7: China Southern Airlines' IPO Withdrawal - China Southern Airlines' logistics subsidiary has withdrawn its IPO application due to market conditions, despite being the most profitable airline logistics company in China [13][14] - The decision reflects a strategic move in light of tightened regulatory scrutiny and the need to reassess capital operations [14] Group 8: Stock Market Performance - The stock market experienced a rebound with the Shanghai Composite Index rising over 1%, driven by active trading and sector rotation [15][16] - The market's performance indicates a mixed sentiment, with some sectors like steel and brokerage stocks showing strength, while others lag behind [16]

Group 1 - JOYY Inc. has entered into agreements with Baidu, Inc. for the sale of its video-based entertainment live streaming business in mainland China, known as YY Live, for an aggregate purchase price of approximately US$2.1 billion in cash [1] - The company previously received approximately US$1.86 billion in February 2021 and has now received an additional cash consideration of approximately US$240 million [1] Group 2 - JOYY is a leading global technology company focused on enriching lives through technology, operating several social products including Bigo Live, Likee, and Hago [2] - JOYY's American Depositary Shares (ADSs) have been listed on NASDAQ since November 2012 [2]

Financial Data and Key Metrics Changes - In Q3 2024, total net revenues were $558.7 million, a decrease from $567.1 million in the same period last year [28] - BIGO segment revenues were $496 million, showing a slight year-over-year increase [28] - Group non-GAAP operating profit was $34.9 million, up 16.4% quarter-over-quarter [6][33] - GAAP net income attributable to controlling interest was $60.6 million, down from $72.9 million in the same period of 2023 [33] - Group's non-GAAP net income margin was 10.9%, compared to 14.3% in the same period of 2023 [36] Business Line Data and Key Metrics Changes - BIGO's non-livestreaming revenue grew 15.5% quarter-over-quarter to $78.2 million, primarily driven by advertising [14] - Likee's advertising revenue increased 33.4% year-over-year, maintaining profitability [20] - Hago's total revenue grew 6.1% quarter-over-quarter, with improved monetization metrics [23] Market Data and Key Metrics Changes - Revenues from developed countries increased by 21.6% year-over-year, contributing 54.9% to group revenue [62] - Revenues from the Middle East region grew by 2.1% quarter-over-quarter, indicating a rebound [62] Company Strategy and Development Direction - The company is focused on optimizing products, deepening market penetration in developed countries, and enhancing global operational capabilities [5] - A globalization strategy is being advanced, enriching user interactions and content offerings [7] - The company aims to diversify revenue streams, with non-livestreaming revenue growing 13.1% sequentially [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that adjustments to content costs and features of non-core products may negatively impact revenues in Q4 [38] - The company expects BIGO's paying users to gradually return to growth in 2025, alongside stabilizing ARPPU [48] - The focus on high-quality premium users is expected to enhance long-term sustainable growth [50] Other Important Information - The company repurchased approximately $117.8 million worth of shares in Q3, totaling $243.7 million for the first three quarters of 2024 [37] - The balance sheet remains healthy with a strong net cash position of $3.3 billion as of September 30, 2024 [36] Q&A Session Summary Question: 2025 outlook on user and revenue trends - Management noted that BIGO's non-livestreaming revenue continued to grow, while live streaming revenue experienced a decline due to content cost optimization and adjustments to non-core products [44][45] - They expect BIGO's paying users to return to growth in 2025, with non-livestreaming revenue maintaining double-digit growth [48][49] Question: General monetization trends across key regions in FY 2025 - Developed countries are expected to continue providing growth momentum, with a focus on high monetization potential regions [62] Question: Progress in capital return and share repurchase program - The company has been active in shareholder return initiatives, repurchasing 12% of total shares outstanding as of the end of last year [68] Question: Outlook for advertising and new initiatives into 2025 - BIGO's advertising revenue showed robust growth, with Likee's advertising revenue growing significantly [72] - Future growth will depend on expanding DAU and refining operations to increase market share [75]

Financial Performance - Net revenues for the third quarter of 2024 were US$558.7 million, a decrease of 1.4% from US$567.1 million in the same period of 2023[9]. - Gross profit was US$208.1 million with a gross margin of 37.3%, compared to US$209.2 million and 36.9% respectively in the third quarter of 2023[2]. - Non-GAAP net income attributable to controlling interest was US$61.2 million, down from US$81.2 million in the same period of 2023, resulting in a non-GAAP net income margin of 10.9%[6]. - Operating income was US$16.4 million, with an operating income margin of 2.9%, compared to US$12.0 million and 2.1% in the same period of 2023[16]. - JOYY reported a net income of $63,279,000 for the three months ended September 30, 2024, compared to a net loss of $7,325,000 for the same period in 2023[71]. - JOYY's diluted net income per ADS for the three months ended September 30, 2024, was $1.05, down from $1.86 in the same period of 2023[67]. User Metrics - Average mobile MAUs for Bigo Live decreased to 36.5 million from 40.3 million year-over-year, while Likee's MAUs fell to 33.9 million from 41.0 million[10]. - The total number of paying users for BIGO was 1.62 million, slightly up from 1.61 million in the corresponding period of 2023[10]. - The number of paying users is calculated based on cumulative registered user accounts that have made purchases on Bigo Live, Likee, or imo at least once during the relevant period[43]. Revenue Breakdown - Other revenues increased by 67.2% to US$119.2 million, driven by substantial growth in advertisement revenues[13]. - Live streaming revenues increased to $495.801 million for the three months ended September 30, 2023, compared to $439.482 million in the same period of 2024, reflecting a growth of 12.8%[47]. - Total net revenues for JOYY in the three months ended September 30, 2024, were $558,654,000, with live streaming contributing $439,482,000[71]. Cash and Assets - As of September 30, 2024, the company had net cash of US$3,302.1 million, down from US$3,357.9 million at the end of 2023[17]. - As of September 30, 2024, total current assets decreased to US$3,287.2 million from US$4,072.6 million as of December 31, 2023, representing a decline of approximately 19.3%[45]. - Cash and cash equivalents decreased to US$481.8 million as of September 30, 2024, down from US$1,064.0 million as of December 31, 2023, a decline of approximately 54.7%[45]. - Total liabilities decreased to US$2,770.1 million as of September 30, 2024, from US$3,171.7 million as of December 31, 2023, a reduction of about 12.6%[46]. - The Company’s total assets decreased to US$8,080.1 million as of September 30, 2024, from US$8,483.9 million as of December 31, 2023, reflecting a decline of approximately 4.8%[45]. Strategic Plans and Future Outlook - The Company has ongoing strategic plans that include potential market expansion and new product development, although specific details were not disclosed in the call[39]. - The Company emphasized the importance of user monetization and growth in active users as part of its future business development strategy[39]. - Future outlook includes continued investment in research and development, particularly in new technologies and products to enhance user engagement[78]. - The company is focusing on market expansion strategies, particularly in the live streaming segment, to drive revenue growth[78]. Shareholder Actions - The company repurchased US$117.8 million worth of shares during the quarter as part of its share repurchase program[11]. - During Q3 2024, the Company repurchased 3.43 million ADSs for a total of US$117.8 million, bringing the total repurchased in the first three quarters of 2024 to 7.31 million ADSs for US$243.7 million[35]. - JOYY's shareholders' equity as of September 30, 2024, was $23,333,000, compared to $22,133,000 as of December 31, 2023[64]. Research and Development - Research and development expenses for the three months ended September 30, 2023, were $71.608 million, slightly down from $72.360 million in the same period of 2024[47]. - Research and development expenses for the three months ended September 30, 2024, totaled $72,360,000, reflecting an increase in investment in new technologies[71].

Core Insights - JOYY Inc. reported strong financial results for Q3 2024, with total revenue of US$558.7 million and significant growth in both GAAP and non-GAAP operating income [2][5] - The company's core business segment, BIGO, generated revenues of US$496.0 million, contributing to overall profitability and positive cash flow [2][4] Financial Performance - JOYY's GAAP operating income was US$16.4 million, reflecting a 623.5% increase quarter-over-quarter, while non-GAAP operating income reached US$34.9 million, up 16.4% [2][4] - The net profit for the quarter was US$60.6 million, with a non-GAAP net profit of US$61.2 million, resulting in net margins of 10.8% and 10.9% respectively [2][5] - BIGO's GAAP and non-GAAP operating income were US$62.7 million and US$72.9 million, marking increases of 8.2% and 5.0% sequentially [2][4] Shareholder Returns - The company repurchased US$117.8 million worth of its shares in Q3 2024, totaling US$243.7 million for the first three quarters, indicating confidence in long-term prospects [3] Business Highlights - BIGO Live focused on advertising investments in developed countries, resulting in a 3.4% year-over-year growth in MAUs and a 9.1% increase in paying users [6] - The platform implemented upgrades to enhance content quality and user engagement, including improved content recommendation algorithms [7][10] - Bigo Live hosted the third season of "BIGO's Most Talented," attracting 5.79 million audience votes, showcasing its community engagement efforts [8] Likee and Hago Performance - Likee's advertising revenue grew by 33.4% year-over-year, maintaining profitability while enhancing user experience through community-building initiatives [11][12] - Hago's revenue increased by 6.1% quarter-over-quarter, driven by targeted incentive strategies, with positive operating cash flow and improved social engagement metrics [13]

Core Viewpoint - JOYY Inc. reported a decline in net revenues and net income for the third quarter of 2024 compared to the same period in 2023, while showing growth in non-livestreaming revenues and operational efficiency improvements. Financial Highlights - Net revenues for Q3 2024 were US$558.7 million, down from US$567.1 million in Q3 2023 [2][5] - Net income attributable to controlling interest was US$60.6 million, compared to US$72.9 million in Q3 2023 [2][13] - Non-GAAP net income attributable to controlling interest was US$61.2 million, down from US$81.2 million in Q3 2023 [2][14] - Live streaming revenues decreased to US$439.5 million from US$495.8 million year-over-year [5] - Other revenues increased by 67.2% to US$119.2 million, driven by significant growth in advertisement revenues [6] Operational Highlights - Average mobile MAUs for Bigo Live were 36.5 million, down from 40.3 million in Q3 2023 [3] - Average mobile MAUs for Likee were 33.9 million, down from 41.0 million, attributed to disciplined spending on user acquisition [3] - Average mobile MAUs for Hago decreased to 4.3 million from 5.0 million [3] - Total global average mobile MAUs were 272.4 million, down from 276.8 million [3] - Total paying users for BIGO increased slightly to 1.62 million from 1.61 million [3] Cost and Profitability - Cost of revenues decreased by 2.1% to US$350.5 million [8] - Gross profit was US$208.1 million, slightly down from US$209.2 million, with a gross margin of 37.3% [9] - Operating expenses were US$192.0 million, a slight increase from US$191.3 million [10] - Operating income rose to US$16.4 million from US$12.0 million, with an operating income margin of 2.9% [11] Shareholder Returns - The company repurchased US$117.8 million worth of shares during Q3 2024, reaffirming its commitment to shareholder returns [4][20] - The total share repurchase program allows for up to US$400 million until November 2025 [21] Business Outlook - For Q4 2024, JOYY expects net revenues to be between US$546 million and US$563 million, reflecting current market conditions and strategies [19]

Group 1: JOYY Overview - JOYY (YY) shares increased by 6.2% to $35.81 in the last trading session, with a higher-than-average trading volume, contrasting with a 0.9% loss over the past four weeks [1] - JOYY benefits from a global user base and a strong portfolio of interactive platforms, including Bigo Live, Likee, and Hago, positioning the company for future growth through innovation and expansion into global commerce SaaS [1] Group 2: Earnings Expectations - JOYY is expected to report quarterly earnings of $0.88 per share, reflecting a year-over-year decline of 27.9%, with revenues projected at $559.97 million, down 1.3% from the previous year [2] - The consensus EPS estimate for JOYY has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Group 3: Industry Comparison - JOYY is part of the Zacks Internet - Services industry, where another company, 21Vianet (VNET), closed 1.7% lower at $3.42, but has returned 4.2% over the past month [3] - For 21Vianet, the consensus EPS estimate has increased by 25% over the past month to $0.03, representing a 150% change from the previous year, and it currently holds a Zacks Rank of 2 (Buy) [4]

Group 1 - JOYY Inc. plans to release its third quarter 2024 financial results after the U.S. market closes on November 26, 2024 [1] - The earnings conference call will be held at 9:00 PM U.S. Eastern Time on November 26, 2024 [1] - Participants can pre-register for the conference call using a provided link and will receive dial-in numbers and a unique PIN via email [2] Group 2 - JOYY is a leading global technology company focused on enriching lives through technology [3] - The company operates several social products, including Bigo Live, Likee, and Hago, creating a vibrant user community globally [3] - JOYY's American Depositary Shares (ADSs) have been listed on NASDAQ since November 2012 [3]

Core Viewpoint - JOYY's stock remains stagnant in the mid $30s, with investor impatience growing due to lack of dividends and updates on the YY Live sale reversal by Baidu [1][2] - The company has a strong cash position, with $2.7 billion in assets exceeding liabilities, which is favorable compared to its $2 billion market cap [1] Financial Performance - JOYY reported a non-GAAP diluted EPS of $1.17, beating estimates by $0.25, although it was down from $1.29 in Q2 2023 [4] - The company generated $71.1 million in net cash from operating activities, an increase from $61.8 million year-over-year but a decrease from $75 million in Q1 [4] - Operating expenses rose to $198.7 million, primarily due to increased general and administrative costs [4] Share Buyback and Debt Management - JOYY increased its share buyback from $54.5 million to $71.4 million, representing 3.9% of ADS, which is significant for shareholder value [8] - The company bought back a $500 million convertible note for $405 million, reducing both cash and debt [3] Regional Performance - Developed markets showed a 32% year-over-year sales increase, now accounting for 54% of overall sales, indicating a shift in focus towards higher-quality earnings [6] - Sales in mainland China decreased by 23% year-over-year, highlighting the challenges in that market [6] New Business Developments - The BIGO Audience Network emerged as a significant growth area, with non-livestreaming BIGO sales increasing by 162% year-over-year [7] - Shopline, an e-commerce platform, is underperforming and lacks growth, leading to a reassessment of its valuation [7] Future Guidance - JOYY guided for Q3 sales between $555 million and $569 million, with expectations to meet the higher end of this range [11] - The company anticipates a slight decline in non-GAAP BIGO operating profits due to adjustments in its audio livestreaming product [11]

交银国际研究 财务模型更新 互联网 2024 年 8 月 28 日 收盘价 目标价 潜在涨幅 美元 33.57 美元 33.00 -1.7% 欢聚集团 (YY US) 2 季度利润超预期；非核心业务调整拖累下半年收入预期 欢聚2季度利润超预期，主要因费用控制好于预期。海外核心产品收入维持同 比增长趋势，短期部分区域内容政策优化及非核心语音业务调整或拖累下半 年收入增长，我们小幅下调 2024 年收入预测，基于好于预期的费用控制，微 调 2024/25 年经调整净利润预期。基于 10 年 DCF，维持 33 美元目标价及中性 评级。 费用优化带动 2 季度利润超预期。欢聚 2024 年 2 季度收入为 5.7 亿美元， 同比+3%/环比持平，略超我们预期2%。BIGO收入同比+8%，直播同比-1%， 核心产品维持同比增长，主要受 MPU 增长驱动。非直播收入中，广告收 入维持快速增长，2 季度 BIGO 收入占比提升至 13.4%。经调整运营利润 3000 万美元，好于我们预期的 2100 万美元，主要因费用控制好于预期。 展望及估值：我们预计 2024 年 BIGO 收入同比+5%，受广告业务拉动延续 增长趋 ...