20230516-招银国际-汇量科技-01860.HK-A_solid_start_into_FY23E_6页_863kb

Summary of Equity Research Report on Mobvista Inc. (1860 HK)

Company Performance Overview
Mobvista reported solid first-quarter 2023 (1Q23) results, with revenue growth of 5% year-over-year and an adjusted net profit of US$4.5 million, aligning with analyst expectations. The improvement is attributed to resilience amid macroeconomic uncertainty and effective cost management.

Key Highlights from 1Q23 Results

• Ad-tech and mar-tech segments showed positive performance: ad-tech revenue grew 5% YoY, and mar-tech by 11.5% YoY.
• Mintegral, a core business unit, increased by 13% YoY, driven by its vertical expansion in midcore and hardcore game segments, with the mix rising to 28.5%.
• Cost containment was evident, with adjusted net margin stabilizing and core customer retention strong at 95.9%.

Upcoming Growth Forecasts
The company is expected to accelerate in the second quarter of 2023 (2Q23E) with a projected 22% YoY revenue increase, primarily fueled by cooperation with Google and the adoption of ROAS-driven marketing models. For the full year, revenue is forecasted to grow at 25% and 20%, with continued margin improvements.

Financial Projections and Valuation

• Maintain BUY rating with a target price of HK$6.3, representing a 54.4% upside from the current price of HK$4.08.
• Earnings forecasts remain unchanged: revenue reaches HK$1,114 million in FY23E and HK$1,337 million in FY24E, with adjusted net profit at HK$40 million for FY24E.
• Valuation multiples: 1.2x to 1.3x price-to-sales for FY23/24E or 30x to 58x price-to-earnings, indicating growth potential.

Risk Considerations
Analysts highlight catalysts including potential acceleration in 2Q23E and Google partnerships, but caution on risks such as macroeconomic volatility and competitive dynamics in the ad-tech and mar-tech sectors. Disclosure requirements note conflicts of interest and recommendations for independent investment due diligence.

Additional Notes
The report includes detailed financial statements, comparative analyses with peers, and long-term growth projections up to FY25E, emphasizing Mobvista's strategic positioning in digital advertising technology.