JOYY (JOYY.O): Expecting 2Q26 Results Decent; 90 Day +CW for Re-rating Potential

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JOYY (JOYY.O): Expecting 2Q26 Results Decent; 90 Day +CW for Re-rating Potential

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21 Jul 2026 16:01:00 ET │ 14 pages

JOYY (JOYY.O)

Expecting 2Q26 Results Decent; 90 Day +CW for Re-rating Potential

CITI'S TAKE

YY is likely to report its 2Q26E results ~end-Aug, and we expect its revs and

adj. OP slightly above VisibleAlpha consensus. We expect live streaming

growth to further improve a bit ahead with continuous recovery in Buy

developed regions, while the key growth driver still to come from ads which Catalyst Watch: Upside

is likely to sustain its strong momentum. Despite GPM being dragged by

Price (20 Jul 26 16:00) US$71.59rising revs contribution from ads, YY should be able to maintain its adj. OPM

largely flattish yoy amid cost optimization for live streaming and Shopline. Target price US$78.00

We fine-tune financial estimates with TP retained at US$78. Based on the Expected share price return 9.0%

trading turnover, we believe YY has been actively executing its share

Expected dividend yield 8.4%repurchase program. That said, considering net cash position of US$3.2bn

vs. mkt cap of US$3.6bn, an annual shareholder return potentially at >16%, Expected total return 17.3%

and improving fundamentals, we see re-rating opportunities for the stock Market Cap US$3,607M

and open a 90-day positive Catalyst Watch. Maintain Buy.

2Q26E results preview — We project total revs to grow 13.2% yoy to US$575mn, vs.

consensus of US$572mn, driven by 5/47/27% yoy growth on Price Performance

entertainment/ads/Shopline respectively. Non-GAAP GPM is projected to reach

(RIC: JOYY.O, BB: JOYY US)34.2% vs. 36.6% a year ago given rising revs contribution from 3P ads, while adj.

OPM is projected at 7.5% thanks to operating leverage and cost optimization. Thus,

adj.