Trefis gives Sina target 72.48-dollar rating

Beijing Time June 4 Evening News, the U.S. investment company Trefis today released a study to give Sina (Nasdaq:sina) stock target price of 72.48 U.S. dollars.

The main contents of the report are as follows:

Valuation points:

Display ads and microblogs account for 51% of our share of Sina's target. Other paid services, including emails and games, account for 10.4% of our share of Sina's target. Mobile paid services accounted for 0.2%. Net cash accounted for 38.4%. Our target stock prices and valuations are based on the classification plus total valuation method, while the valuation of each business is based on the DCF valuation method.

show that the advertising business accounts for most of Sina's valuations. This is mainly due to the following reasons:

Higher gross margin. The gross profit margin of the display advertisement 2013 is 60%, higher than the mobile value-added service 32%. We estimate that in the long run, this gross margin will rise from 60% in 2013 to more than 65%.

Low uncertainty.

The commercialization of Weibo has been enhanced. With more than 500 million registered users, Weibo is already one of China's leading social networks. The commercialization of Weibo is being stepped up, and the sale of some shares to Alibaba (rolling information) will accelerate the commercialisation of micro-blogging. Over the next 3 years, the deal will generate 380 million dollars in revenue for Weibo. (D-Gold)