WB(HK:09898)2024-03-19 16:00Investment Rating - The report maintains a rating of "Buy" for the company [1][4]. Core Views - The company has shown a recovery in revenue growth in Q4 2023, with a net income of $464 million, representing a year-on-year increase of 3.5% [4]. - The advertising marketing business is gradually recovering, with expectations that the upcoming Olympic Games will stimulate brand advertising spending [4]. - The overall operating profit margin remained stable in 2023, despite an increase in marketing expenses in Q4 [4]. Financial Performance Summary - Q4 2023 net revenue was $464 million, with a GAAP operating profit of $119 million, resulting in an operating profit margin of 26% [4]. - For the full year 2023, net revenue was $1.76 billion, a decrease of 4.2% year-on-year, while GAAP net profit was $343 million, an increase of 300% year-on-year [4][5]. - The company reported a cash flow from operating activities of $673 million for 2023, indicating healthy cash flow management [4]. Revenue Breakdown - Q4 2023 advertising revenue was $404 million, up 3.4% year-on-year, with significant contributions from Alibaba [4]. - Value-added services revenue for Q4 2023 was $60 million, reflecting a 4.3% increase, primarily driven by gaming-related income [4]. - For the full year 2023, advertising revenue totaled $1.53 billion, down 3.9% year-on-year, while value-added services revenue was $226 million, down 5.8% [4]. Future Outlook - The report anticipates that advertising revenue growth will accelerate in the second half of 2024 due to the Olympic Games [4]. - The forecast for non-GAAP net profit has been adjusted to $421 million for 2024 and $484 million for 2025, with a projected PE ratio of 5.8 for 2024 [5][6].