Weimob Inc. (2013 HK) SaaS business beat expectation, continuing to implement the three core strategies March 30, 2021 554

PSR Recommendation: BUY Status: Upgraded
Target Price: HKDHKD26.70

Investment Summary
The company has made adjustments on its revenue breakdown structure and classified the
net method part of the targeted marketing business as merchant solution within the digital
commerce segment
In the 2020 annual report, the company has made adjustment on the revenue breakdown
structure. The main segments are now renamed as digital commerce segment and digital
media segment (previously named as the SaaS business and the targeted marketing business).
More specifically, the original SaaS business has now been classified as the subscription
solution sub-segment within the digital commerce segment, while the targeted marketing
part with revenue recognized by net method is now classified as the merchant solution subsegment within the digital commerce segment. On the other hand, the targeted marketing
part with revenue recognized by gross method is now classified as the digital media segment.
After the adjustment, a major part of the targeted marketing business is expressed as the
value-adding services of the SaaS business, so as to better show the synergy between these
two major businesses.

About the author

Profile photo of Kevin Chiu

Kevin Chiu

Kevin Chiu received Bachelor`s Degree from University of Bristol and obtained Master`s Degree with distinction in Accounting and Finance from Warwick Business School. Kevin once worked as an analyst in the Equity Capital Market department of China Securities International, and he is familiar with the operation of Hong Kong`s capital market. Kevin is currently a licensed research analyst at Phillip Securities and covers TMT / Education sectors.

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