The report titled: "Actively Promotes Cooperation with Douyin, Expected to Boost Advertising Revenue & Performance—Weimob Inc. (2013.HK) Update Review" was published on October 22, 2025. Analysts: Tianzi Fu, CFA, FRM (License No: S0930517040002) and Pengpei Yang (License No: S0930524070002). Key Events: On October 20, Weimob Inc. announced its partnership with Douyin Group’s comprehensive digital marketing service platform, Jinliang Engine, becoming its comprehensive advertising agency and obtaining the Jinliang Qianchuan service provider license. This collaboration focuses on: 1) Weimob will provide integrated solutions for brand merchants across multiple platforms under Douyin Group, including Toutiao, Douyin, Xigua Video, Faceu, and Qingyan, driving long-term stable growth in marketing revenues and profits. In 2021, the advertising spending on Douyin reached approximately 3 billion yuan, and this partnership is expected to contribute significantly to merchant solution revenues in 2026. 2) Leveraging Weimob’s leading digital business technology and rich brand resources, along with extensive customer service experience, Weimob aims to assist more merchants in achieving smart operations across various business directions, including digital marketing, local life services, AI, Douyin Mall, and Feishu. Outlook of Fundamentals: 1) Merchant Solutions: We estimate that in 2025, Weimob’s gross advertising revenue will be approximately 17 billion yuan, slightly decreasing year-on-year, due to proactive elimination of low-quality clients and optimization of the client structure. In 2026, there is potential for further growth in revenues from Tencent channels, in addition to the increments brought by Douyin channels, leading us to estimate a gross advertising revenue exceeding 20 billion yuan. In terms of rebate difference, Weimob is actively reducing downstream rebates; in the first half of 2025, the net rebate improved from 2.1% in the same period last year to 3.85%, an increase of 1.7 percentage points, suggesting stable growth in subsequent rebate differences, with the growth rate of merchant solutions revenue and profits anticipated to outpace the gross revenue growth. 2) In terms of SaaS business: There are signs of stabilization, and we anticipate a return to positive growth in 2026. Revenue growth will primarily come from: AI-related products contributing 34 million yuan in the first half of 2025, with potential for continued growth; the company will also expand its footprint in the local life sector, such as the pet industry and various service scenarios, introducing more industry solutions to further enhance smart retail-related revenue; Weimob's mini-program has integrated with Douyin and Meituan, linking the coupon system and collaborating with Xiaohongshu and Alipay for deeper connections within each ecological system. The company secured a $200 million investment from international long-term capital to continue bolstering AI development. On September 18, the company announced a subscription agreement with top international long-term investment firm Infini Capital, successfully raising $200 million. This round of financing will support three main areas: first, the integration and application of AI in SaaS, upgrading AI technological infrastructure to enhance computational power and storage; second, expanding media channels and targeted marketing services to deepen ecological layout on platforms like Douyin and Xiaohongshu; third, actively promoting overseas business development, investing in companies with AI innovation models and relevant products, and laying out cross-border operations. Profit Forecast, Valuation, and Rating: Weimob’s SaaS business has shown signs of stabilization post-adjustment; in the merchant solutions sector, the company has reduced low-margin outsourced operation and finance services, proactively adjusting the advertising client structure. Considering the incremental benefits from the partnership with Douyin, we maintain our revenue forecast for 2025 and slightly revise upward the 2026-2027 revenue projections to 17.9 billion and 20.0 billion yuan (up by 3% and 6% from previous forecasts), maintaining an "Overweight" rating. Risk Alerts: Client expansion may fall short of expectations; AI commercialization progress may not meet expectations; changes in platform rebate policies. Disclaimer.