Goldman Sachs maintains Weibo bid rating up to 25 dollars

Beijing time August 15 Evening News, Goldman Sachs today issued an investment report to maintain the NASDAQ:WB "buy" rating, the target share price from 24 U.S. dollars to 25 dollars.

The following is a summary of the contents of the report:

In the second quarter of the 2014 fiscal year, Weibo revenue was 77.3 million U.S. dollars, the chain growth of 15%, up 105% year-on-year, compared to US and Bloomberg survey analyst's average expectation is higher than 2%. Based on non-US general accounting standards, the loss of $0.03 per share is consistent with the average expectation of analysts surveyed by US and Bloomberg. Weibo expects revenue for the third quarter to reach $79 million trillion to $82 million, with median growth of 51% per cent year-on-year, 1% higher than our forecast, and 2% per cent higher than the average forecast by Bloomberg survey analysts.

Analysis：

1 The number of active users of microblogging month is 157 million, an increase of 30%. The number of active users was 70 million, an increase of 32%, of which 78% used mobile devices to access Weibo. Mobile revenue of 23 million U.S. dollars, the chain growth of 44%, accounting for the overall advertising revenue of 39%.

2 The second quarter, micro-blog through cooperation with the television to strengthen the user interaction, to help Weibo won the brand advertisers customers. We believe that this will help to promote the future commercialization strategy of Weibo, such as a multiple-screen advertising solution.

3 Weibo launched its payment service in April and currently has 5 million active users. Management says it plans to integrate the tool into the user social graph to create trading capabilities.

4 The main categories of advertising: FMCG, automotive and Internet services, respectively. The advertising loading rate is 1%, and management expects the second half to improve with precision advertising technology.

We are expected to increase the earnings per share for the 2014 fiscal year 2016 to 3% to 6%, and to increase the target share price for the next 18 months from 24 to $25. (Li Ming)