汇量科技：Solid 1Q24 with enhanced profitability

Investment Rating - The report maintains a "BUY" rating for Mobvista Inc. with a target price of HK$6.00, indicating a potential upside of 92.9$3.11 [2][4]. Core Insights - Mobvista reported strong 1Q24 results with revenue and adjusted net profit increasing by 23% and 97% year-over-year, respectively. The non-gaming business revenue contribution rose to 29% in 1Q24 from 19.5% in 1Q23 [2]. - The upgraded smart bidding system has significantly improved revenue growth, particularly in the Mintegral platform, which saw a revenue increase of 25.4% year-over-year in 1Q24 [2]. - A settlement agreement regarding Reyun transactions has eased previous overhangs, allowing investors to focus on Mobvista's organic growth and profitability improvements [2]. Summary by Sections Earnings Summary - Mobvista's revenue for 1Q24 was US$301.5 million, reflecting a 23$8.9 million, a 97% increase compared to the previous year [2][8]. - The gross profit margin reached 20.5%, up 1.3 percentage points year-over-year, driven by higher advertising efficiency and controlled costs in the mar-tech business [2][8]. Revenue Breakdown - The adtech/mar-tech segment reported revenue growth of 23% and 19% year-over-year, with programmatic advertising growing by 25% [2][9]. - Non-gaming revenue share increased significantly, with e-commerce and social media being key growth drivers [2][10]. Financial Forecasts - The report forecasts revenue growth of 20% year-over-year for FY24E, with adjusted net profit expected to grow by 91% [2][11]. - The financial outlook for FY24E includes projected revenue of US$1.265 billion and adjusted net profit of US$37 million [13][15]. Valuation - The report employs a sum-of-the-parts (SOTP) valuation method, assigning a 20x FY24E P/E to the ad-tech business and a 3.0x FY24E P/S to the mar-tech business, leading to a total equity value of HK$6.00 per share [12][2].