CICC Maintains "Outperform" Rating on NEWBORNTOWN (09911) with HK$14.5 Target Price

Stock News12-16 10:02

CICC has reiterated its revenue and profit forecasts for NEWBORNTOWN (09911) for 2025 and 2026. The firm maintains an "Outperform" rating with a target price of HK$14.5, implying a 38% upside from the current level (trading at 11.5x/9.9x 2025/2026 Non-IFRS P/E). Key highlights include:

1. **Core Product Performance**: - MICO has stabilized operationally post-restructuring, with sequential revenue stabilization and YoHo sustaining year-over-year growth. - New products SUGO and TopTop prioritize user acquisition, achieving mid-to-high double-digit MAU growth globally in markets like Germany, France, and Brazil. CICC maintains its forecast for a 30% YoY increase in social revenue for 2H.

2. **Strategic Initiatives**: - **Short Drama**: The company is testing global distribution of translated and self-produced short dramas, currently in an investment phase with manageable losses, aiming for future synergy with its social ecosystem. - **Gaming**: Flagship game *Alice's Dream* has entered the profit cycle, while new games in testing may launch in 1H 2026, potentially contributing incremental revenue.

3. **Efficiency & Profitability**: Focused on ROI-driven expansion, NEWBORNTOWN balances growth investments with profit generation. CICC expects full-year adjusted net profit of RMB1.1 billion, with further margin improvements as products mature.

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CICC expects full-year adjusted net profit of RMB1.1 billion, with further margin improvements as products mature.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1109","symbol_name":"应用软件","start_time":0,"source_url":"","article_id":"1187184445","we_media_id":"1036600163","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1187184445","pubTimestamp":1765850546,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Stock News","introduction":"Global Stock News First-Time Broadcast","home_visible":1,"id":"1036600163","head_image":"https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a"},"summary":"CICC has reiterated its revenue and profit forecasts for NEWBORNTOWN (09911) for 2025 and 2026. 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