Kaiyuan Securities Maintains "Buy" Rating on MOBVISTA (01860), Q3 Adjusted Profit Surges, AI-Driven Growth Expected

Stock News11-27

Kaiyuan Securities reiterated its "Buy" rating on MOBVISTA (01860), citing strong Q3 performance with revenue up 39% YoY and adjusted net profit soaring 167% YoY. The growth was primarily driven by the sustained expansion of its programmatic ad platform Mintegral, particularly in gaming, while AI-powered smart bidding products (contributing over 80% of revenue) significantly optimized ad performance.

**Key Financials** For Q1-Q3 2025, MOBVISTA reported revenue of $1.47 billion (+39% YoY) and adjusted net profit of $84 million (+167% YoY). Q3 revenue reached $532 million (+28% YoY, +7% QoQ), with adjusted net profit at $24 million (+126% YoY, +51% QoQ). Gross margin improved to 21.24% (+0.47 ppts YoY), while sales/management/R&D expense ratios declined to 3.81%/3.54%/9.09% (-0.48/-0.64/-1.21 ppts YoY). Adjusted net margin rose to 5.71% (+2.73 ppts YoY), reflecting scaling benefits and enhanced profitability.

**Business Highlights** - **Ad Tech**: Q3 ad tech revenue hit $527 million (+27.8% YoY, +6.7% QoQ), with Mintegral contributing $508 million (+26.2% YoY, +6.6% QoQ). Gaming revenue surged 30.5% YoY to $384 million, while non-gaming revenue grew 14.5% YoY to $124 million. - **Smart Bidding**: Since May 2023, Mintegral launched four AI-driven bidding products. By mid-2025, non-gaming advertisers’ Target ROAS/CPE spending rose 7%/38% from early-year levels, with smart bidding products accounting for over 80% of Mintegral’s Q3 revenue.

**AI-Driven Innovation** MOBVISTA deepened AI integration across ad services: - **Creative Tools**: Playturbo added AI voiceovers/translation/rapid image generation in March, followed by "digital human videos" and "image-to-video" features in August. - **Ad Optimization**: The April-launched Hybrid ROAS model targeted high-value users, while July’s IAP ROAS strategy boosted overseas app monetization efficiency.

Kaiyuan expects AI to further enhance service competitiveness and sustain growth.

**Risks**: Regulatory shifts, intensifying competition, and slower-than-expected AI adoption.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment