CICC recently initiated coverage on JOYY Inc. (JOYY.US) with a "Buy" rating and set a 2026 target price of $97, indicating significant upside potential from the current stock price. The report highlights JOYY as an investment opportunity combining value and growth potential.

From a value perspective, the company's current market capitalization is below its net cash position (approximately $3.3 billion as of Q2 2025). According to its shareholder return plan for 2025-2027, JOYY plans to repurchase around $300 million in shares and distribute approximately $600 million in cash dividends ($50 million per quarter), translating to an annualized shareholder return rate of about 10%, further enhancing its investment appeal.

Meanwhile, JOYY’s core live-streaming business has stabilized quarter-over-quarter in Q2 2025 after adjustments and is expected to generate steady cash flow.

From a growth standpoint, the rapid expansion of global third-party programmatic advertising—evidenced by strong performances from companies like AppLovin and Mobvista—positions JOYY’s BIGO Ads platform favorably. Leveraging first-party data from its entertainment and e-commerce ecosystem and shared cost structures with its live-streaming business, BIGO Ads can compete in the third-party data market with lower customer acquisition costs (CPI).

Currently in its early growth phase, JOYY’s advertising business is accelerating, with analysts optimistic about its potential to drive a second growth curve. This could shift the company’s investment narrative from value to growth.

Analysts emphasize JOYY’s improving fundamentals, with overseas live-streaming stabilizing sequentially and advertising revenue growing strongly year-over-year. As advertising scales up and profitability rebounds, JOYY is poised for a valuation re-rating.