Maintain Sina stock holding and wait-and-see rating

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

Sina will release its second-quarter financial results for the 2013 fiscal year after the U.S. stock market closed in the eastern time of August 12 (Beijing time August 13). Teleconference live broadcast is scheduled for Eastern time August 12, 2013 9 o'clock in the evening to 10 (Beijing time August 13, 2013 9 o'clock to 10). Conference Call access Number: United States: +1 845 675 0438; Hong Kong, China: +852 3051 2745. Password: 29900221.

Performance forecast: We expect the total revenue from Sina's second quarter to reach $150.1 million trillion. Based on non-US GAAP (excluding the 4.7 million-dollar deferred authorized revenue associated with China's real Estate Information Group), revenues will reach $145.4 million trillion, up about 15% per cent year-on-year. And Sina's guidance revenue is expected to increase 13% to 16% year-on-year. We expect that, based on non-US GAAP, the diluted earnings per share will reach $0.15 trillion, compared with $0.02 in the first quarter and $0.06 a year earlier.

Earnings Focus:

Advertising revenue prospects: Microblog commercialization has boosted Sina's advertising revenue growth. In the first quarter of this year, Weibo revenue accounted for about 20% of Sina's total revenue, compared with almost zero a year ago. In addition, portal advertising revenue will rebound in the second quarter, will appear year-on-year growth.

Microblogging commercialization: Sina launched a new advertising solution for Weibo in March (such as fans) to provide information outreach services for small and medium-sized enterprises. August, Sina also launched a "micro-bo-Taobao" platform to facilitate micro-blogging users in Taobao shopping. In addition to account integration, the new platform also provides new marketing services, allowing Taobao sellers to upload product information, such as price and user feedback, allowing buyers to complete the transaction directly.

Profit margin trend: In the first quarter, Sina operating profit margin rebounded 9%, we expect the second fiscal quarter year-on-year growth of 4%, mainly thanks to micro-blogging commercialization and operating leverage.

Valuation: We continue to maintain the "hold-see" rating of Sina stock.