Investment Rating - Neutral rating for YY US with a target price of 37,implyingapotentialupsideof10.9570 million slightly exceeded expectations by 2%, with adjusted net profit of 64million,up28543-560 million, 5% above Bloomberg consensus [2] - 2024 BIGO revenue growth is expected to be 6%, partially offset by adjustments in the voice business [2] - The termination of the YY Live deal with Baidu has negatively impacted investor sentiment [2] Financial Performance - YY's 2023 revenue declined 6% YoY to 2.268billion,witha1.4293 million, with a forecasted decline of 8% to 270millionin2024[5]−BIGOLiveMAUgrew437 from 39basedona10−yearDCFmodel,implyinga2024P/Eof8x[2]−YYreturned355 million to shareholders in 2023 through dividends and buybacks, representing 122% of adjusted net profit [2] - Over $500 million in buyback capacity remains as of the report date [2] Industry Context - YY is categorized under the entertainment content sub-sector, alongside peers like Bilibili, Kuaishou, and Tencent Music [11] - The report covers a broad range of internet and education companies, with most receiving Buy ratings [11]
