First Read: JOYY Inc "2026 AIC: Downside protected with growth optionality"

Research evidence excerpt

First Read: JOYY Inc "2026 AIC: Downside protected with growth optionality"

ted growth in 2H.

12/27E 6.95 6.15

Leveraging Bigo ad's first-mover advantage in web-based ad and non-gaming verticals, 12/28E 7.94 6.87

mgmt remains confident in the robust growth outlook for 3P ad, and reiterates its

revenue target of US$1bn by 2028, implying c50% CAGR. 2) Shopline: Mgmt Sardonna Fong

anticipates an accelerating growth momentum over the next quarters, driven by i) rapid Analyst

expansion in cross border merchants, ii) geographic expansion (e.g. US), and iii) ramping sardonna.fong@ubs.com

+852-3712 3042

up of VAS monetization. As revenue scales and operating efficiency improves, mgmt

remains optimistic about Shopline achieving its breakeven target in 2028. Kenneth Fong

Analyst

Shareholder return: A bright spot; anticipated upside as earnings potential kenneth-kc.fong@ubs.com

+852-3712 3890

unleashes

Mgmt remains highly committed to delivering shareholder returns, supported by its net Jenny Yuan

cash of US$3.2bn as of Mar-26. The company has enhanced its shareholder return

S1460525030004

programs to US$1.5bn over 2026-28 (+67% from prior US$900m over 2025-27),

jenny-za.yuan@ubs.com

consisting of 1) share repurchase of US$600m (prior US$300m) and 2) quarterly +86-21-3866 8912

dividend program of US$900m (prior US$600m). This would yield a 15% annualized

return, highest among China internet names. Looking ahead, as Joyy's growth

businesses continue to scale and contribute incremental profits, we foresee further

opportunities in an accelerated execution of its shareholder return strategy.

Valuation: Undemanding 11x 2026E P/E; Downside well protected

Highlights (US$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 2,268 2,238 2,125 2,352 2,646 3,064 3,554 4,070