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Newborn Town Inc.
(9911)
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Rating:71Outperform
Price Target:
HK$8.00
▼(-32.60% Downside)
Action:Reiterated
Date:06/10/26
The score is driven primarily by strong financial performance (profitability improvement, very low leverage, and robust free cash flow), partially offset by weak technical trends (below major moving averages and negative MACD) and a relatively high P/E with no dividend yield data to support valuation.
Positive Factors
Conservative balance sheet & high ROE
Extremely low leverage and a growing equity base provide durable financial flexibility to fund product development and weather downturns without refinancing pressure. High reported ROE (~37%) indicates efficient capital use and supports sustainable investment capacity, though sustaining margins is key.
Negative Factors
Profitability volatility & past loss
Historical swings—loss in 2021 and wide margin variability across 2023–2025—highlight earnings cyclicality tied to product cycles and user monetization. This makes long-term margin sustainability uncertain and raises execution risk for maintaining high ROE and consistent free cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet & high ROE
Extremely low leverage and a growing equity base provide durable financial flexibility to fund product development and weather downturns without refinancing pressure. High reported ROE (~37%) indicates efficient capital use and supports sustainable investment capacity, though sustaining margins is key.
Read all positive factors
Newborn Town Inc. (9911) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$11.55B
Dividend YieldN/A
Average Volume (3M)4.06M
Price to Earnings (P/E)14.2
Beta (1Y)1.63
Revenue Growth35.42%
EPS Growth87.47%
CountryHK
Employees1,573
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,408,034,400
10 Day Avg. Volume3,806,924
30 Day Avg. Volume4,062,158
Financial Highlights & Ratios
PEG Ratio-1.95
Price to Book (P/B)10.71
Price to Sales (P/S)3.79
P/FCF Ratio18.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$13.44Price Target Upside13.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Newborn Town Inc. Business Overview & Revenue Model
Company Description
Newborn Town Inc. operates as a global investment holding company, primarily focusing on mobile application development and providing mobile advertising platform services. Its offerings include live streaming features accessible through various so...
How the Company Makes Money
Newborn Town Inc. primarily makes money by monetizing its mobile applications through a mix of (1) in-app purchases and virtual item sales (e.g., users paying for premium features, subscriptions, or virtual goods within social/entertainment apps),...
Newborn Town Inc. Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.89B | 5.09B | 3.31B | 2.80B | 2.36B |
| Gross Profit | 3.85B | 2.61B | 1.72B | 1.06B | 1.00B |
| EBITDA | 982.04M | 886.05M | 858.22M | 291.38M | -337.03M |
| Net Income | 934.53M | 480.31M | 512.85M | 130.13M | -286.28M |
Balance Sheet | |||||
| Total Assets | 4.40B | 3.58B | 2.79B | 1.72B | 1.62B |
| Cash, Cash Equivalents and Short-Term Investments | 2.80B | 2.29B | 1.56B | 746.13M | 890.71M |
| Total Debt | 86.04M | 83.32M | 108.27M | 112.19M | 10.77M |
| Total Liabilities | 1.82B | 1.93B | 843.36M | 482.21M | 782.33M |
| Stockholders Equity | 2.44B | 1.54B | 1.12B | 707.82M | 476.80M |
Cash Flow | |||||
| Free Cash Flow | 1.40B | 1.05B | 743.56M | 301.74M | 389.85M |
| Operating Cash Flow | 1.42B | 1.06B | 753.50M | 312.64M | 393.85M |
| Investing Cash Flow | -570.62M | -86.77M | 214.58M | -356.56M | -55.10M |
| Financing Cash Flow | -304.67M | -318.59M | -162.34M | -139.59M | -29.83M |
Newborn Town Inc. Technical Analysis
Positive
11.87
Price Trends
8.56
Negative
9.05
Negative
10.21
Negative
Market Momentum
-0.19
Negative
52.07
Neutral
40.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9911, the sentiment is Positive. The current price of 11.87 is above the 20-day moving average (MA) of 7.89, above the 50-day MA of 8.56, and above the 200-day MA of 10.21, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 40.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9911.
Newborn Town Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | HK$11.55B | 14.19 | 42.15% | ― | 35.42% | 87.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | HK$50.18B | 28.32 | -8.12% | ― | 3.16% | ― | |
57 Neutral | HK$21.89B | 132.71 | 1.75% | ― | 12.11% | ― | |
56 Neutral | HK$5.34B | -3.24 | -139.39% | ― | 19.85% | ― | |
49 Neutral | HK$8.35B | 76.90 | 4.80% | ― | 81.43% | ― | |
42 Neutral | HK$4.71B | -16.61 | -66.11% | ― | 18.94% | 89.36% |
* Technology Sector Average
HK:9911
Newborn Town Inc.
8.20
-1.96
-19.29%
HK:8083
China Youzan
1.56
-0.32
-16.98%
HK:0268
Kingdee International Software Group Co
6.18
-9.34
-60.18%
HK:2013
Weimob
1.15
-0.66
-36.46%
HK:2556
Marketingforce Management Ltd
31.10
-16.20
-34.25%
HK:2586
Dmall Inc.
6.04
-5.10
-45.78%
Newborn Town Inc. Corporate Events
Newborn Town Cancels 5.17 Million Repurchased Shares to Boost Per-Share Metrics
Jun 4, 2026
Newborn Town Inc. has cancelled 5,174,000 shares it repurchased on the Hong Kong market between 27 April and 29 May 2026 under shareholder-approved buyback mandates from its 2025 and 2026 annual meetings. Following the cancellation, the company...
Newborn Town Wins Strong Shareholder Backing for All AGM Resolutions
May 21, 2026
Newborn Town Inc. reported that all resolutions at its 21 May 2026 annual general meeting were approved by shareholders, including adoption of the 2025 audited financial statements and re-election of all proposed executive and independent non-exec...
Newborn Town Sets 2026 AGM to Approve 2025 Results, Board Mandates and Auditor Fees
Apr 28, 2026
Newborn Town Inc. has called its annual general meeting for 21 May 2026 in Beijing, where shareholders will review and adopt the audited consolidated financial statements and directors’ and auditor’s reports for the year ended 31 Decem...
Newborn Town Posts Double-Digit Q1 Revenue Growth on AI-Driven Expansion
Apr 22, 2026
Newborn Town Inc. reported strong unaudited growth for the first quarter of 2026, with total revenue expected between RMB2.03 billion and RMB2.13 billion, up about 33% to 39.6% year on year. The group’s social networking business remained it...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.