Understanding the Market | WEIMOB INC. Surges Over 8% as Tencent's Video Accounts Commercialization Accelerates, the Company is Expected to Benefit from Structural Dividends

WEIMOB INC. is now up more than 8%, as of the time of publication, it is up 7.38% to HKD 1.31, with a turnover of HKD 28.7551 million. On the news front, Tencent recently released its second-quarter financial report. It is reported that the user usage time of Video Number has increased significantly year-on-year, mainly due to the growth of recommendation algorithms and more localized content. Tencent has recently taken many measures to systematically strengthen its trading capabilities, improve user experience, and boost merchants' sales performance. For example, on August 12, Tencent officially announced that starting from August 25, it will officially support merchants to upgrade Video Number stores to WeChat stores. Open Source Securities believes that Tencent is the second largest shareholder of WEIMOB INC. Due to its backing by Tencent, WEIMOB, as Tencent's first service provider for social advertising, has strong control over industry changes, closely following trends such as Official Accounts, Mini Programs, Cloud Services, and Video Number, and has repeatedly become one of Tencent's first partners. The firm believes that with the rapid increase in Video Number usage, WEIMOB, as an important service provider in the Tencent ecosystem, is enjoying structural dividends. Moreover, WEIMOB's SaaS business, through close cooperation with Tencent's Smart Retail, is attracting super major clients. In the future, with the advancement of the core strategic transformation towards smart retail major clients, the SaaS business is expected to achieve profitability