NEWBORNTOWN (09911) surged more than 5%, reaching HK$10.92 by the time of writing, with a trading volume of HK$68.67 million. A research report noted that the company has seen improved operational efficiency following MICO's organizational restructuring, with revenue stabilizing quarter-over-quarter. YoHo maintained year-on-year growth, while mature products continued to deliver steady profits.
New products SUGO and TopTop remain focused on user expansion, with global MAU growing at a mid-to-high double-digit rate year-on-year in Q4, according to Sensor Tower. Rapid adoption has been observed in markets like Germany, France, and Brazil. As a result, the report maintains its forecast of a 30% year-on-year increase in social revenue for the second half.
Looking ahead, SUGO and TopTop are expected to remain key growth drivers amid geographic expansion. Notably, NEWBORNTOWN is exploring global distribution of translated and self-produced short dramas through in-house development and acquisitions. While still in the investment phase with manageable losses, the company anticipates future synergies with its social ecosystem.
For the coming year, operational leverage is expected to improve, particularly as SUGO and TopTop—currently in an expansion phase with temporarily lower margins—gradually mature and enhance profitability.
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