DBS industry analysis: Advertising sector experiencing high growth, strong cash reserves and high shareholder returns providing strong support for JOYY, Inc. Sponsored ADR Class A group (JOYY.US) stocks.

Recently, DBS Bank released an industry research analysis, pointing out that advertising technology is the mature application field of AI, which can bring the highest return on investment in AI capital expenditure. The analysis mentioned that the global mobile app advertising market is expected to grow at a compound annual growth rate (CAGR) of 9%, reaching $534 billion by the fiscal year 2029. Among them, gaming, e-commerce, and other verticals (including social media) apps will each account for approximately 20%, 50%, and 30% of the market. Third-party advertising platforms with strong AI bidding capabilities, such as JOYY, Inc. Sponsored ADR Class A (JOYY.US), are rapidly growing through compounding, seizing market share with higher advertising ROI. The global expansion of Asian gaming, e-commerce, and short video apps provides strong momentum for the growth of third-party advertising platforms. JOYY, Inc. Sponsored ADR Class A group's global advertising technology and cross-border e-commerce SaaS layout, ample cash reserves, and high dividend yield provide a safe margin for investment, with valuation elasticity. The rapid growth of the advertising business further strengthens market bullish expectations. DBS is bullish on the value + growth combination of JOYY, Inc. Sponsored ADR Class A group. As of the second quarter of 2025, JOYY, Inc. Sponsored ADR Class A had $3.3 billion in net cash, covering a market value of over 100%. According to its shareholder return plan from 2025 to 2027, the company plans to return up to $900 million to shareholders, including $600 million in dividends (approximately a 6% dividend yield) and up to $300 million in buybacks (approximately 3% of the market value). Additionally, live streaming revenue, as a "cash cow," continues to remain stable.