Open Source Securities: Upgraded WEIMOB INC (02013) to a "Buy" rating. Top service providers are expected to benefit first from WeChat "gifting".

Open Source Securities released a research report stating that WEIMOB INC (02013) was the first to integrate mini programs into WeChat Mini Stores. In the future, with the improvement of the WeChat e-commerce ecosystem, as a leading service provider under Tencent, Weimob is expected to benefit first. The firm maintains the company's revenue forecast for 2024-2026 at 1.81/2.11/2.39 billion yuan. The company has actively shrunk its business with small and medium-sized clients, while its advertising business continues to grow. As a leading service provider under Tencent, it is expected to benefit first from the gradual improvement of the WeChat transaction ecosystem, leading to an upgrade to a "buy" rating. Key points from Open Source Securities: - WeChat Mini Stores introduce the "send gifts" feature, which is expected to enhance the variety of brands and products on the supply side. According to Latepost, on December 19, WeChat conducted a gray test for the "send gifts" feature. In addition to jewelry and education training categories, products with original prices not exceeding 10,000 yuan will default to support the "send gifts" feature. Users can select products in the WeChat Mini Stores and send gifts to friends in the chat page like sending red packets. The recipient only needs to fill in the address to wait for the delivery. The firm believes that in the short term, the "send gifts" feature will help link functions within the WeChat ecosystem, such as video accounts and mini programs, and attract merchants to join through social diffusion advantages, enhancing the richness on the supply side. This helps solve the issues of mini programs lacking public flow, video accounts lacking merchant supply, and the need to expand consumer awareness. In the future, WeChat Mini Stores may leverage video accounts to integrate public and private traffic flow and collaborate with mini programs to build a complete WeChat e-commerce ecosystem. - Weimob is the first to integrate mini programs into WeChat Mini Stores, with a focus on subsequent merchant entry and GMV drive. According to the WeChat Smart Retail official account on December 20, Weimob is the first to integrate mini programs into WeChat Mini Stores, helping merchants integrate mini programs and WeChat Mini Stores. The firm believes that Weimob, as an important service provider under Tencent, is expected to enjoy structural dividends. With the cultivation of consumer consumption awareness on WeChat, the continuous influx of B-side merchants into the WeChat ecosystem, the integration of WeChat's public and private domain traffic, and the continuous improvement of the transaction ecosystem, there is the potential for new SaaS customers. Additionally, the company is expected to enhance customer value through product selection, advertising placements, and comprehensive services.