Weimob Posts 50% Revenue Growth in 1H 2020
Prior to Weimob releasing its 1H 2020 earnings, JP Morgan had shorted 9.94 million shares at HKD 10.3763.
Weimob (02013:HK) published its mid-year earnings and recognized CNY 957 million revenue with a year-on-year growth of 45.7%. SaaS products, including the commerce cloud and marketing clouds, contributed CNY 305 million, accounting for 32% of the total revenue. Targeted marketing services revenue increased by 70% from CNY 437.6 million to CNY 745 million in the first half.
Recent Chinese app banning orders issued by President Trump rocked related stocks: Tencent’s stock price slumped 10% on August 7 and related tech H-shares saw price jumps, too. Weimob’s business is built on WeChat’s environment and hence was interfered with after Tencent’s recent tumbles.
The company is one of the biggest cloud-based marketing providers based on Tencent’s (00700:HK) mega app WeChat. In February, Weimob suffered from an internal attack by an employee and over three million clients were affected. The attack had burned off a billion yuan, which took the company three months to recover.
The first half ended with promising financials. However, the market failed to respond accordingly. At the time of publication, Weimob shares were stuck at HKD 10.74, with an open price of over HKD 11 at the day.