On June 3, Mobvista Inc fell 5.03% in regular trading, trading at HK$14.17/share, with trading volume of HK$222 million. The stock has now declined for three consecutive trading days.
The selloff continues to be driven by the company's Q1 earnings released on May 31, which revealed a significant divergence between revenue and profit growth. Revenue rose 32.2% year-on-year to US$581 million, while adjusted net profit grew only 10.6% to US$24.2 million. R&D expenses surged 47% and selling expenses increased 34%, compressing the operating profit margin to just 3.8%. Period profit declined 59.2% quarter-on-quarter. The heavy investment phase, focused on AI infrastructure upgrades and the MaxAgent multi-agent system, has weighed on near-term profitability.
Additionally, the prior rally driven by Temasek's US$150 million strategic equity placement and pre-earnings expectations had already been fully priced in. With all positive catalysts now digested, funds have continued to lock in gains. Notably, Huatai Research maintained a Buy rating with a target price of HK$28.28, citing the new AI platform expected to launch in October and contribute incremental revenue from Q4 onward.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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