CITIC SEC sets JOYY, Inc. Sponsored ADR Class A (JOYY.US) target price at $97, optimistic about 10% shareholder return and high advertising potential.

CITIC SEC recently released a research report covering JOYY, Inc. Sponsored ADR Class A Group (JOYY.US) for the first time, giving it a "buy" rating and setting a target price of $97 for 2026, indicating significant upside potential compared to the current stock price. The report points out that JOYY, Inc. Sponsored ADR Class A is currently an investment target with both value and growth potential. From a value perspective, the company's current market value is lower than its net cash (approximately $3.3 billion in the second quarter of 2025). According to the company's announcement, the shareholder return plan for 2025-2027 includes approximately $3 billion in share buybacks and approximately $6 billion in cash dividends ($50 million per quarter), with an annualized shareholder return rate of approximately 10%, further enhancing its investment attractiveness. Meanwhile, after adjusting its traditional live broadcast business, the company's business stabilized in the second quarter of 2025 and is expected to provide stable cash flow in the future. From a growth perspective, the global third-party programmatic advertising industry is rapidly developing, with companies such as Applovin and MOBVISTA achieving solid performance. JOYY, Inc. Sponsored ADR Class A's BIGO Ads platform, leveraging its own data accumulation in the entertainment and e-commerce ecosystem, combined with a cost structure shared with its live broadcast business, has the ability to participate in third-party data competition at a lower customer acquisition cost (CPI). Currently, the advertising business is still in the early stage of accelerated growth, and analysts are optimistic about the rapid expansion of the company's third-party advertising business bringing a second growth curve that is expected to drive the company's investment system from value to growth. Analysts emphasize that the fundamentals of JOYY, Inc. Sponsored ADR Class A are stable and improving, with its overseas live broadcast business stabilizing compared to the previous period, and its overseas advertising business experiencing year-on-year high growth. With the increase in advertising business volume and profitability, JOYY, Inc. Sponsored ADR Class A is expected to undergo a valuation reassessment.