GF SECURITIES·2026-03-19 10:19Investment Rating - The report assigns a "Buy" rating for the company, with a current price of $8.64 and a target value of $13.35 [6]. Core Insights - The company is expected to see accelerated growth in advertising revenue, with plans to reinvest incremental income into its ecosystem and AI initiatives [3][10]. - The forecast for 2026 anticipates revenue of $1.846 billion, reflecting a 5% year-over-year growth, while adjusted net profit is projected to be $409 million, showing a decline of 7.1% [5][10]. - The report highlights that advertising revenue is stabilizing, driven by e-commerce and local service ads, with a notable increase in collaboration with Alibaba [10]. Financial Projections - Revenue projections for the upcoming years are as follows: - 2024: $1.755 billion - 2025: $1.757 billion - 2026: $1.846 billion - 2027: $1.925 billion - 2028: $2.008 billion - The EBITDA for these years is projected to be: - 2024: $544 million - 2025: $758 million - 2026: $592 million - 2027: $662 million - 2028: $696 million [5]. - The adjusted net profit is expected to be: - 2024: $479 million - 2025: $440 million - 2026: $409 million - 2027: $459 million - 2028: $482 million [5]. Valuation Metrics - The report estimates a price-to-earnings ratio (P/E) of 4.4 for 2024, increasing to 5.2 by 2026, with an expected return on equity (ROE) of 8.6% in 2024, declining to 6.8% in 2026 [5]. - The EV/EBITDA ratio is projected to decrease from 3.9 in 2024 to 3.0 in 2028, indicating a potential improvement in valuation over time [5].