SINA: Time to Unlock & Recalculate the Underlying Value of its Assets; Expect Better 1Q17 Results; Maintain Buy and Raise Price Target
​SINA will report 1Q17 results on May 16th before the market opens with an 8:10am EST conference call. We are expecting 1Q results to be better than consensus driven by strong results from its core business, Weibo, and stable performance of the portal business. In addition, we continue to believe that Sina is undervalued. SINA owns 50% of WB, which is valued at $13.4B. In addition, SINA has $1.2B net cash. Just adding the value of these two, SINA should be valued at $7.8B per share, or $107.00 per share, a 30% upside from its current level. SINA has been working on its transition from a portal business to verticals and we believe some of the verticals will show its value soon. Therefore, we maintain our Buy rating on the stock and raise our price target to $94.00.
Sina is an online media company serving China and the global Chinese communities. Co.'s digital media network includes SINA.com (It offers professional content on each of its region specific websites), SINA.com (It provides information and entertainment content from SINA portal customized for WAP users) and Weibo (It is a form of social media, featuring microblogging services and social networking services that allow users to connect and share information). Co. offers an array of services including mobile value added services, online video, music streaming, online games, photo sharing, blog, email, classified listings, fee-based services, e-commerce and enterprise services.
T.H. Capital is an independent research and investment advisory firm specializing in China. We offers real-time, on-the-ground, bottom-up research across a wide spectrum from macro and industry analysis to company specific projects; from China ADRs to international names that have meaningful exposure to China market. We deliver relevant, comprehensive and data driven research adding immense value to clients.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.