China's Weimob drops most in 17 months on weak results, broker downgrade

Weimob

16/08/2022 06:48

** Shares of China's cloud-based commerce and marketing
solutions provider Weimob Inc  2013.HK  drop as much as 15% to
HK$3.62, their biggest intraday pct decline since March 2021
    ** Stock sinks to its lowest since March 16, and on track to
snap three straight sessions of gains; second-biggest percentage
decliner in Hang Seng Composite Index  .HSCI  
    ** The Tencent-backed co says its H1 net loss widened to
658.8 mln yuan ($97.1 mln) from 560.2 mln yuan last year, with
revenue falling 6.2% year-on-year to 899.6 mln yuan  urn:newsml:reuters.com:*:nFWN2ZR2HC
    ** UOB Kay Hian downgrades Weimob to "sell" from "hold" and
cut TP to HK$3.70 from HK$4.30, saying the 1H22 results were
disappointing and revenue fell short of the street estimate  
    ** Jefferies maintains "buy" rating, but lowers revenue
estimates for 2022/2023 as result of the discontinuation of
digital media business in 2022 and sees risks including market
share loss due to new entrants and competition
    ** Tencent  0700.HK  falls 1.5%
    ** Hang Seng Tech Index  .HSTECH  declines 1%, while Hang
Seng Composite Index  .HSCI  and Hang Seng Index  .HSI  both
slip 0.6%
    ** As of last close, stock down 46% this year

    ($1 = 6.7873 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))