Dear U: Likely weak Q226 results

研报英文原文证据摘录

Dear U: Likely weak Q226 results

ion in overseas markets

remains at an early stage, increasing artist participation and fan activity support our view that

international expansion can become a meaningful contributor over time. In addition, new premium

services and the continued migration toward lower-cost web payments should support monetization

and margins.

EVIDENCE China already accounts for 35% of DearU’s revenue, and with Android representing just 30% of

DearU’s OS mix—versus 77% Android share in China—there could be meaningful upside if the

company expands further via QQ Music. Tencent Music’s massive scale (553mn MAU and 124.4mn

paying users as of Q225) offers a strong monetization opportunity. Additionally, DearU launched a

webstore in July 2025 to bypass Apple and Google’s ~24% in-app commission, replacing it with a

6% webstore fee—supporting margin expansion.

WHAT´S PRICED IN? DearU's share price has declined roughly 50% YTD due to slower progress in China expansion and

weakness in subscriber growth. We believe the market remains cautiously awaiting execution on

subscriber recovery and the success of China Bubble.

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Operating profit growth

Value drivers Revenue growth (25-27E) Target PE (27E)

(25-27E)

Won35,000upside 20% 34% 23x

Won28,000base 14% 29% 15x

Won15,000downside 8% 10% 15x

Source: UBS estimates

Company Description Dear U is a fan communication platform company founded in 2017, offering a subscription-based

messaging service called Bubble that connects artists with their fans. Through Bubble, fans receive

personalized messages and access exclusive content, creating a highly immersive experience.

Dear U 24 July 2026 ab 2