Investment Rating - The report maintains a "Buy" rating for Mvagista Inc. with a target price of HKD 6.00, representing a potential upside of 92.9% from the current price of HKD 3.11 [2][3]. Core Insights - Mvagista Inc. reported strong first-quarter performance with a year-on-year net profit growth of 23% and an adjusted net profit growth of 97%. The non-gaming business revenue contribution reached 29%, up from 19.5% in the same quarter of the previous year [2][3]. - The upgraded smart bidding system has significantly contributed to revenue, with the Mitegral platform's revenue accelerating to a year-on-year growth of 25.4% in Q1 [2][3]. - The company is optimistic about its overall momentum for FY24E, forecasting a revenue growth of 20% and a profit growth of 91% [2][3]. Summary by Sections Financial Performance - Q1 revenue reached USD 301.5 million, reflecting a 23% year-on-year increase. Adjusted net profit for the same period was USD 8.87 million, exceeding expectations by 4% [2][3][8]. - The gross profit margin (GPM) for Q1 was 20.5%, up 1.3 percentage points year-on-year, driven by improved advertising efficiency and disciplined cost management [2][3][8]. Revenue Breakdown - The advertising technology segment saw a year-on-year revenue growth of 23%, with programmatic advertising growing by 25% [2][3]. - Non-gaming revenue, particularly from e-commerce and social media, has become a key growth driver, contributing significantly to the overall revenue [2][3]. Future Outlook - The report projects a revenue increase to USD 1.265 billion for FY24E, with a continued focus on enhancing profitability and expanding into new verticals [10][12]. - The company has reached a settlement regarding the Reyun acquisition, which is expected to alleviate uncertainties surrounding the deal [2][3]. Valuation Metrics - The report provides a sum-of-the-parts (SOTP) valuation, assigning a 20x FY24E P/E to the advertising technology business and a 3.0x FY24E P/S to the majority technology business, leading to a target price of HKD 6.00 [2][3][11].
汇量科技：第 1 季度稳健 ， 盈利能力增强