JOYY(US:JOYY) HTSC·2025-08-28 06:03Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company's Q2 2025 revenue reached $508 million, slightly above the expected $507 million, but down 10.2% year-over-year. Adjusted net profit was $77 million, exceeding the consensus estimate of $60 million [1][5] - The live streaming business showed a quarter-over-quarter recovery, while the advertising segment experienced significant growth, with a more than 40% increase in the programmatic advertising platform in the first half of the year [1][2] - The company plans to return $300 million to shareholders annually over the next three years [1] Revenue Performance - The BIGO segment generated $443 million in Q2 2025, down 12.7% year-over-year, with live streaming revenue at $355 million, down 19.1% year-over-year but up 1.1% quarter-over-quarter [2] - The core platform Bigo Live had a monthly active user count of 29.6 million, showing a quarter-over-quarter increase [2] - Non-live business revenue for BIGO was $87 million, up 28.9% year-over-year, driven by the growth of the programmatic advertising platform [2] Profitability and Forecast - The All Other segment reported revenue of $65 million in Q2 2025, up 12.6% year-over-year, with an adjusted operating loss of $24 million, a 40% reduction in losses year-over-year [3] - The company expects revenues for 2025-2027 to be $2.087 billion, $2.195 billion, and $2.303 billion respectively, with adjusted net profits projected at $265 million, $275 million, and $303 million [4][10] - The target price has been raised to $71.90 from $60.10, based on a revised PE ratio of 14.1x [4][10] Valuation Metrics - The company’s market capitalization is approximately $2.674 billion, with a closing price of $51.54 as of August 26, 2025 [6] - The average daily trading volume over the past six months is $20.58 million [6] - The stock has a 52-week price range of $31.64 to $55.27 [6]