WB(HK:09898)2024-05-28 03:02Investment Rating - The report maintains a "Buy" rating for the company [1][4] Core Views - The company's revenue in Q1 2024 decreased by 4% year-on-year, primarily due to exchange rate impacts, while operating profit margin improved slightly [4] - The company plans to strengthen its hot marketing model to attract high ARPU (Average Revenue Per User) customers [4] - The forecast for non-GAAP net profit for 2024, 2025, and 2026 is $437 million, $482 million, and $511 million respectively, with corresponding PE ratios of 5.2, 4.8, and 4.5 [4][5] Financial Performance Summary - Q1 2024 net revenue was $396 million, down 4% year-on-year, while operating profit was $99.74 million, up 3.4% year-on-year [4][6] - Non-GAAP gross margin for Q1 2024 was 78.5%, a decrease of 1.4 percentage points year-on-year [6] - The company had cash and cash equivalents totaling $3.3 billion as of March 31, 2024 [4] Revenue Breakdown - Advertising revenue in Q1 2024 was $339 million, down 5% year-on-year, while value-added service revenue was $56.55 million, down 3% [4][6] - The company aims to focus on IP hotspots and customer hotspots to enhance its advertising business competitiveness [4] Future Outlook - The company expects advertising revenue growth to accelerate in the second half of 2024, driven by events like the Summer Olympics and summer entertainment hotspots [4] - The overall cost and expense levels are expected to remain stable year-on-year [4]