According to the research report released by China Securities Co., Ltd., Weibo (09898) has made positive progress in the ecological aspects of the vertical field since 2021, with continuous growth in the scale of vertical content and a proportion of 40%. It has achieved results in supporting traffic in the vertical field, and is expected to improve user activity and content quality. At the same time, the current digital 3C industry is expected to start a new round of product cycle to drive industry demand upward. The game industry has gained incremental benefits from the resumption of game licenses and the expansion of mini-program games, while the automotive industry continues to benefit from the new energy automotive brand's new round of product cycle. The international brand sales of the beauty industry are still under pressure, affecting the scale of budget investment. The industry's advertising cycle is at the bottom, and it mainly focuses on the situations of FMCG and e-commerce industries. This is essentially a cycle of clearing inventory of existing products, and is bullish on the overall upward trend of Weibo's advertising after inventory clearance.
In addition, Weibo plans to expand the use of AI in the vertical content field through AIGC, which is expected to bring new impetus for the company's future growth. Maintaining a "buy" rating.
