2013.HK
U.S. banking giant JPMorgan disclosed it sold 3.94 million shares of e-commerce services provider Weimob Inc. on Nov. 1, lower its stake from 6.01% to 5.87%.

The latest: U.S. banking giant JPMorgan disclosed it sold 3.94 million shares of e-commerce services provider Weimob Inc. (2013.HK) on Nov. 1, lower its stake from 6.01% to 5.87%, according to a new Hong Kong Stock Exchange filing.

Looking up: After the sale, JPMorgan still owns about 164 million shares and remains the company’s fifth-largest shareholder.

Take Note: Such stake reductions by a major shareholder are generally considered a negative signal, possibly showing its lack of optimism on the company’s prospects.

Digging Deeper: Weimob provides e-commerce software as a service (SaaS) and is closely tied to Tencent’s (0700.HK) popular WeChat social networking platform. Founded in 2013, as WeChat was starting its meteoric rise, the company started out selling customer relationship management (CRM) software to e-commerce merchants on WeChat. In 2016, it added digital marketing tools to help those merchants acquire and retain customers, before going public in 2019. After recording a profit in 2019, the company has racked up cumulative losses of more than 3.7 billion yuan ($507 million) over the past three years as its e-commerce customers reined in spending during the pandemic.

Market Reaction: Weimob’s shares rose on Monday and closed up 6.8% at HK$3.51 by the midday break, near the lower end of their 52-week range.

Translation by A. Au

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