1、7T2se3r0Ot6kwoPa7T2se3r0Ot6kwoPaDistributed on:18/08/2025 15:06:03 GMTDistributed on:18/08/2025 15:06:03 GMT18 August 2025Deutsche BankResearch Rating Hold Asia China Technology Software&Services Company Weibo Date Forecast Change AI helps user engagement and ad efficiency2Q beat;performance differs

2、 across verticalsWeibos 2Q revenue(+2%YoY)was largely in line with consensus,while adjusted net profit(+13%YoY)came in 20%higher than market expectations due to better cost control and a one-off gain on the collection of an account receivable which had previously been recognized as a bad debt expens

3、e.User traffic(e.g.,MAU/DAU)remained largely stable YoY.Notably,ad revenue from the e-commerce advertisers outperformed due to their rising promotion activities.Looking into 3Q,we expect the topline growth may slow due to a tough comp of certain advertisers verticals such as online game,handset,FMCG

4、,etc.,while the e-commerce sector should maintain heathy momentum.We slightly trim our FY25/26 revenue estimates by 1%/1%,but we increase our adjusted net profit estimates by 5%/1%to reflect better margins.Hence,we raise our DCF-based target price to HK$85;maintain Hold.Performance by verticalsIn 2Q

5、,ad revenue from the e-commerce,internet services and NEV verticals outperformed,while FMCG,online games,luxury,and entertainment were drags.Looking into 3Q,we expect(1)the e-commerce and NEV verticals could sustain heathy momentum;but(2)the handset and FMCG verticals could be challenging due to a h

6、igh base;and(3)weakness in online games could linger due to a lack of promotion activities from new blockbusters.AI intelligent search,AIGC ad content generation,and AI ad placementThe company continues to explore AI technology in areas such as AI intelligent search,AIGC ad content generation,and AI