Day Hao Capital released a research report today to maintain the micro-blog buy rating

Summary: Check the latest quotes Beijing time November 11 Evening News, Hong Kong investment Bank Hao Capital today released a study to maintain the micro-BO (NASDAQ:WB) stock buying rating, as well as the 24 dollar target share price. The following is the full report: Micro-Blog will be on November 13 the United States to see the latest market

Beijing Time November 11 Evening News, Hong Kong investment Bank Hao Capital today released a study to maintain the micro-BO (NASDAQ:WB) Shares of the "buy" rating, as well as the 24 dollar target share price.

The following is the full report:

The microblog will be reported in the third quarter of 2013 after the close of the U.S. stock market (Beijing time November 14 morning), and will hold its earnings call on the eastern time of November 13 20:00. We believe that Weibo will report, at least in line with expectations or slightly better than expected in the third quarter of 2014 results. This is mainly due to the new commercialization of microblogs and the positive growth in user participation. With regard to the fourth quarter of 2014, we expect the microblog to release the expected performance forecasts, mainly because of the high average expectations of analysts because of the strong electricity business. We believe the company is in a good position to give full play to its revenue potential due to its new commercialization program. Therefore, we maintain a "buy" rating on Weibo shares and a 24 dollar target share price.

Increased fundamentals may result in the third quarter of 2014, which is expected or slightly better than expected

Over the past year, Weibo has focused on new ways to enhance commercial levels. In the third quarter of 2014, Weibo launched a number of interactive projects between television and microblogs. In addition to working with Alibaba, this could be a new source of revenue. These TV shows, such as the "good Chinese voice" of Zhejiang TV, "12-way", and "where is Papa" of Hunan TV and "The Voice of Chinese Dream" of Oriental TV, have brought additional traffic and attracted more users to participate. According to our proprietary data, the level of user involvement in these hot topics shows a steady growth rate. At the same time, we believe that the popularity of micro-blogging mobile applications will continue to grow healthily. As of November 7, the cumulative download for the Android platform's microblogging applications was 2 billion, up from 1.89 billion at October 8, 2014. As a result, we expect the company's third-quarter results in 2014 to match or slightly better than the previous performance outlook, which is 79 million to 82 million U.S. dollars on line. On the level of profitability, we expect that Weibo's earnings will be in line with analysts ' average losses of 0.01 dollars per share.

2014 Fourth quarterly performance outlook is likely to benefit from a 11 promotion and more interactive projects between TV and Weibo

Due to the inclusion of "double 11" and "double 12" in a number of promotional activities, the fourth quarter will become the peak quarter of the electricity business. We believe that strong electric business is likely to increase the volume of microblogging platforms, and the interactive project between TV and Weibo will continue to contribute. We believe that Weibo's 2014 fourth-quarter revenue outlook is likely to match the analyst's average forecast of $100.6 million trillion, and our estimated $99.9 million trillion (which is likely to be slightly higher than the average analyst forecast) and a 23% quarter-on-quarter growth.

Valuation

Weibo is at a time of strong profit growth. Based on earnings forecasts for $0.69 per share in 2016, we offer a 35 times-fold forward-earnings ratio, which is equivalent to a target of $24 trillion. The average growth rate of 2014 to 2016 is 51%, which is equivalent to 0.96 times times the growth ratio of the city surplus (PEG).

Risk

1 inability to find new commercial models, 2 from competition from micro-credit and other emerging mobile network applications, 3 more stringent regulatory environment, 4 macroeconomic environment impact. (Lili)