US investment company Day Hao Capital (T.h.capital) released investment Report today

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

Sina's business was strong in the third quarter of fiscal year 2013, with revenues and diluted earnings per share higher than Wall Street's expectations. The quarter's guidance was expected to be better than Wall Street's expectations, thanks largely to the commercialization of microblogs. In the future, with the diversification of Micro Bo Commercialization, will continue to promote SINA performance growth. If Sina Weibo is now on the market, we believe its valuation must be higher than the current valuation. Since the commercialization of micro-blogging is progressing well, we are bullish on Sina's near-term and long-term prospects. Therefore, we continue to maintain its stock "buy" rating.

In contrast to Twitter, Sina Weibo is undervalued: We believe Weibo should be valued at 8.6 billion to 10 billion dollars if Weibo is now listed and compared to Twitter. Comparing financial data, we believe Sina Weibo is doing better than Twitter. In terms of revenue size, two companies are comparable, but Weibo margins seem to be better than Twitter. In the third year of commercialization, we thought Sina Weibo would make a profit, while Twitter was at a loss. Although Weibo's financial data is better than Twitter, Sina Weibo is valued at just 6.5 billion dollars, well below Twitter's $22.7 billion trillion, based on Alibaba's investment deal. Specifically, in terms of daily independent user visits, the valuation means Twitter is valued at $227 trillion and Weibo at $108 trillion. In terms of market sales, Twitter is 30.2 times times and Weibo is 18.2 times times. The median value of the first two, that is, 168 dollars, means the microblog is valued at 10 billion dollars. The median value of the latter means that the microblog is valued at 8.6 billion dollars. As a result, Sina Weibo's current 6.5 billion dollar valuation is too conservative.

Diversification of microblogging commercialization: In addition to Alibaba's E-commerce display advertising and brand advertising, we believe that Sina will introduce more commercial methods. We believe that two products will eventually bring significant revenue to Sina: 1 for small and medium-sized enterprises for the promotion of information, 2 for enterprises or Third-party service providers of data mining services. The news promotion service, which was launched in March this year, is still in the market-nurturing phase, but has contributed about 10% of Weibo advertising revenue in the third quarter, twice times the second quarter. We believe that, with the increase in CPM (thousand people cost), as well as more SME users, this part of the revenue will grow rapidly. and data mining services are just starting to take Twitter as a reference, which is expected to account for 1/3 of Twitter's business. We believe that Sina Micro-BO Data mining services have a larger space for expansion.

Strong third-quarter results: The total revenue was $179.9 million trillion, higher than Wall Street's projected $178.6 million trillion and our projected $177.9 million trillion. Advertising revenue of 151.6 million dollars, consistent with the guidance of expectations, higher than we expected 148.5 million U.S. dollars. Weibo advertising revenue of 43.7 million U.S. dollars. Non-advertising revenue of 28.4 million U.S. dollars, higher than the guidance of expectations. Based on non-US GAAP, the earnings per share is $0.42 trillion, up from Wall Street's expected $0.32 trillion.

Quarterly results forecast: Sina expects total net revenue for the fourth quarter to reach $190 million trillion to $194 million trillion, up 41% to 44% higher than Wall Street's expected $182 million trillion, and our expected $188.6 million trillion. Advertising revenue will reach 160 million U.S. dollars to 162 million U.S. dollars, an increase of 45% to 46%.

Adjustment of performance expectations: We will increase the revenue of Sina quarter from 188.6 million U.S. dollars to 191.7 million U.S. dollars, the diluted earnings per share forecast from 0.44 U.S. dollars to 0.46 dollars. For the entire 2013 fiscal year, we have projected revenue from USD 640.6 million to $645.7 million, and the projected earnings per share is expected to increase from 0.99 US dollars to 1.12 dollars. As for fiscal year 2014, we have projected revenue from USD 768.8 million to $803.8 million, and the projected earnings per share is expected to increase from 1.96 US dollars to 2.05 dollars. In fiscal year 2015, we expect SINA revenue to reach $995 million trillion, with a diluted earnings of $3.33 per share.

Valuation: We continue to maintain the Sina stock "buy" rating, while maintaining the 101 dollar target share price unchanged.