Newborn Town Inc. (9911) AI Stock Analysis

• Market Cap: HK$16.24B
• Dividend Yield: N/A
• Average Volume (3M): 7.82M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.39
• Revenue Growth: 51.54%
• EPS Growth: -11.81%
• Country: HK
• Employees: 1,573
• Sector: Technology
• Sector Strength: 86
• Industry: Software - Application
• EPS (TTM): 0.43
• Shares Outstanding: 1,412,474,400
• 10 Day Avg. Volume: 6,661,807
• 30 Day Avg. Volume: 7,824,248
• PEG Ratio: -1.95
• Price to Book (P/B): 7.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$11.00
• Price Target Upside: -4.35% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: HK$13.50 ▲(17.39%Upside)

The overall stock score reflects strong financial performance and positive technical indicators, making it attractive for growth investors. The high P/E ratio suggests a premium valuation, and the technical indicators hint at potential overbought conditions. The absence of dividend yield and earnings call insights slightly temper the score.

Newborn Town Inc. Business Overview & Revenue Model

Company Description

Newborn Town Inc. (9911) is a technology-driven company that primarily operates in the social networking and mobile internet sectors. The company develops and manages a variety of mobile applications aimed at enhancing communication and social interaction among users globally. Its core products include social networking platforms and mobile applications that facilitate real-time communication and user engagement.

How the Company Makes Money

Newborn Town Inc. generates revenue through a combination of in-app purchases, advertisements, and premium subscription services within its mobile applications. The company leverages its large user base to attract advertisers and partners, creating a steady stream of advertising revenue. Additionally, Newborn Town Inc. collaborates with other tech companies and developers to expand its reach and enhance its product offerings, further contributing to its financial performance.

Newborn Town Inc. Financial Statement Overview

Summary

Newborn Town Inc. is in a robust financial position with strong revenue growth, healthy profit margins, and effective cash flow management. The company maintains a low debt profile and utilizes its equity efficiently. While net income shows minor fluctuations, the company's overall financial health and growth trajectory remain positive, making it well-positioned for future opportunities in the software application industry.

Income Statement

Newborn Town Inc. demonstrates strong revenue growth with a remarkable increase of 54% from 2023 to 2024. The company maintains robust profitability with a gross profit margin of 51.2% and a net profit margin of 9.4% for 2024. Furthermore, the EBIT margin stands at 14.3%, indicating efficient core operations. However, the slight decrease in net income from the previous year suggests some pressure on net profitability.

Balance Sheet

The company exhibits a solid financial position with a debt-to-equity ratio of 0.05, reflecting low leverage and financial stability. The equity ratio is strong at 43%, indicating a healthy reliance on equity financing. Return on equity is 31.2%, showcasing effective utilization of equity for generating profits. However, increasing liabilities over the years may need monitoring as a potential risk.

Cash Flow

Operating cash flow to net income ratio is strong at 2.2, indicating excellent cash generation relative to income. Despite a decrease in net income, free cash flow grew significantly by 41.8%, highlighting efficient capital management and expenditure control. The company's ability to generate free cash flow consistently supports its financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.09B	3.31B	2.80B	2.36B	1.18B
Gross Profit	2.61B	1.72B	1.06B	1.00B	757.52M
EBITDA	886.05M	858.22M	291.38M	-337.03M	159.30M
Net Income	480.31M	512.85M	130.13M	-286.28M	39.69M
Balance Sheet
Total Assets	3.58B	2.79B	1.72B	1.62B	1.27B
Cash, Cash Equivalents and Short-Term Investments	2.29B	1.56B	746.13M	890.71M	609.02M
Total Debt	83.32M	108.27M	112.19M	10.77M	3.35M
Total Liabilities	1.93B	843.36M	482.21M	782.33M	481.16M
Stockholders Equity	1.54B	1.12B	707.82M	476.80M	536.47M
Cash Flow
Free Cash Flow	1.05B	743.56M	301.74M	389.85M	293.60M
Operating Cash Flow	1.06B	753.50M	312.64M	393.85M	295.67M
Investing Cash Flow	-86.77M	214.58M	-356.56M	-55.10M	-97.07M
Financing Cash Flow	-318.59M	-162.34M	-139.59M	-29.83M	72.85M

Newborn Town Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 11.5 is above the 20-day moving average (MA) of 10.88, above the 50-day MA of 10.35, and above the 200-day MA of 6.14, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 69.26 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9911	77 Outperform	HK$16.24B	26.88	36.24%	―	51.54%	-11.81%
9899	71 Outperform	HK$57.76B	33.83	16.82%	―	-0.89%	110.44%
3896	61 Neutral	HK$34.51B	―	-33.05%	―	13.37%	3.82%
Sector *	57 Neutral	HK$14.57B	5.76	-5.77%	4.75%	9.65%	-43.80%
8083	54 Neutral	$3.74B	―	-16.87%	―	-2.35%	-837.50%
2013	49 Neutral	$7.16B	―	-77.88%	―	-41.17%	-103.00%

Newborn Town Inc. Corporate Events

Newborn Town Inc. Reports Strong Growth in H1 2025

Newborn Town Inc. reported significant growth in its social networking and innovative business segments for the first half of 2025. The social networking business saw a substantial increase in downloads and active users, with revenue rising by over 35% year-on-year, driven by AI technology. Meanwhile, the innovative business experienced a revenue increase of up to 74.9%, supported by traffic monetization, social e-commerce, and niche games.

Newborn Town Inc. Secures Shareholder Approval for Key Resolutions at AGM

Newborn Town Inc. successfully conducted its Annual General Meeting on May 21, 2025, where all proposed resolutions were approved by shareholders. Key resolutions included the adoption of financial statements, re-election of directors, re-appointment of KPMG as auditor, and granting mandates for share allotment and repurchase. The approval of these resolutions reflects strong shareholder support and positions the company for continued growth and strategic flexibility.

Newborn Town Inc. Grants 897,415 RSUs Under Award Scheme

Newborn Town Inc. has announced the grant of 897,415 Restricted Share Units (RSUs) to seven grantees under its RSU Award Scheme, representing approximately 0.06% of the company’s issued share capital. This grant, which does not dilute existing shareholders’ stakes, is part of the company’s strategy to incentivize and retain talent. The RSUs are subject to a lock-up period and will vest over a specified schedule, with the first unlocking occurring within six months of the grant date.

Newborn Town Inc. Announces Annual General Meeting and Strategic Resolutions

Newborn Town Inc. has announced its upcoming annual general meeting scheduled for May 21, 2025, in Beijing. The meeting will address key resolutions including the adoption of the company’s financial statements, re-election of directors, and re-appointment of KPMG as auditors. Additionally, the company seeks approval to allot and issue shares, reflecting its strategic focus on expanding its market presence and operational capabilities.

Newborn Town Inc. Demonstrates Confidence with Share Purchase

Newborn Town Inc. has announced a voluntary share purchase under its RSU Award Scheme, with Three D Partners Limited acquiring 332,000 shares at an average price of HK$6.48. This move, which represents approximately 0.02% of the total shares, reflects the company’s confidence in its business outlook and aims to create value for shareholders while maintaining a strong financial position.