Lyon released a research report sayingbandicootgame, maintain the "Buy" rating of Fast-Hand-W (01024) with a target price of HK$83.
The bank expects fast hand's first quarter results to be solid, with total revenue rising 15% year-on-year to 29 billion yuan, and adjusted Ebit to reach 3.6 billion yuan, compared with only 200 million yuan in the same period last year. E-commerce remains the main engine of growth, with the bank expected to maintain strong year-on-year growth of 29%, driving a 40% year-on-year increase in e-commerce advertising and commissions.
The report pointed out that external advertising may continue to maintain double-digit growth as the inventory of short drama advertising increases and the coverage of mini games and offline advertisers expands. Domestic business Ebit could reach RMB3.9 billion with a profit margin of 14%, while overseas losses could shrink further to RMB400 million. The bank expects fast hand's full-year profit margin to increase by 70% year-on-year.