CITIC Securities released a research report stating that it has raised the Target Price for WEIMOB INC (02013) by 56% to HKD 2.8, considering the upward adjustment of industry valuation and the increased certainty of mid-term growth. The earnings forecasts for 2024 and 2025 remain unchanged, maintaining an "outperform industry" rating. On December 18, the WeChat mini-store launched a grayscale test of the "gift giving" feature. With the gradual increase in the activity of the WeChat e-commerce ecosystem, it is expected that WEIMOB, as a leading third-party service provider, will benefit.
WEIMOB has long provided private domain traffic e-commerce related services based on the WeChat ecosystem, such as setting up and operating small programs for e-commerce. Additionally, WEIMOB is a leading service provider for Tencent's video account advertising. With the gradual prosperity of the WeChat e-commerce ecosystem, WEIMOB can assist existing merchants in achieving integration between public domain (WeChat mini-store) and private domain (mini program store), which is expected to lead to a more substantial increase in customers. Furthermore, they can further unlock growth potential through value-added services related to the ecosystem.
In addition, since October 2022, WEIMOB has been proactively laying out AI, and it has gradually formed four major AI layout dimensions: AI + Saas (empowering Saas merchants for smart operation), AI + marketing (AI-driven smart marketing to reduce costs and improve efficiency), ToB (providing personalized AI solutions), and ToC (providing AI tools for small and micro enterprises and designers). Currently, the company has launched three smart solutions: WEIMOB WAI, WAI Pro, and WIME, targeting small and medium-sized merchants, brand merchants, and individual store owners, respectively. It is expected that as the company's AI product matrix continues to improve and its functions mature, alongside the gradual recovery of downstream customers' willingness to pay, the commercialization of the company's AI products is expected to advance gradually.
