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Newborn Town Inc. (HK:9911)
:9911
Hong Kong Market
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Newborn Town Inc. (9911) AI Stock Analysis

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HK:9911

Newborn Town Inc.

(9911)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
HK$12.00
▲(18.46% Upside)
Newborn Town Inc. demonstrates strong financial performance with robust revenue growth and effective cash flow management, which are the most significant factors contributing to its score. However, technical analysis indicates bearish momentum, and the stock is nearing oversold territory, which tempers the overall outlook. The valuation is reasonable, supporting a balanced view of the stock's potential.

Newborn Town Inc. (9911) vs. iShares MSCI Hong Kong ETF (EWH)

Newborn Town Inc. Business Overview & Revenue Model

Company DescriptionNewborn Town Inc. (9911) is a technology company specializing in the development of mobile applications and digital solutions, primarily focusing on the social networking and online gaming sectors. The company aims to enhance user engagement through innovative platforms, providing services that cater to the evolving needs of digital communication and entertainment. With a commitment to leveraging cutting-edge technology, Newborn Town Inc. has established itself as a key player in the mobile internet ecosystem, targeting both domestic and international markets.
How the Company Makes MoneyNewborn Town Inc. generates revenue through multiple streams, including in-app purchases from its mobile applications, advertising revenue from its platforms, and subscription fees for premium services. The company monetizes its user base by offering free-to-use apps that encourage users to make purchases for enhanced features, virtual goods, or ad-free experiences. Additionally, strategic partnerships with advertisers and gaming companies enhance revenue opportunities by providing targeted advertising spaces within their applications. The growing user base and increasing engagement levels contribute to higher advertising rates and more significant in-app purchase volumes, driving the overall earnings of the company.

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.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.00B5.09B3.31B2.80B2.36B1.18B
Gross Profit3.24B2.61B1.72B1.06B1.00B757.52M
EBITDA920.58M886.05M858.22M291.38M-337.03M159.30M
Net Income744.92M480.31M512.85M130.13M-286.28M39.69M
Balance Sheet
Total Assets3.89B3.58B2.79B1.72B1.62B1.27B
Cash, Cash Equivalents and Short-Term Investments2.37B2.29B1.56B746.13M890.71M609.02M
Total Debt111.87M83.32M108.27M112.19M10.77M3.35M
Total Liabilities1.76B1.93B843.36M482.21M782.33M481.16M
Stockholders Equity2.00B1.54B1.12B707.82M476.80M536.47M
Cash Flow
Free Cash Flow1.23B1.05B743.56M301.74M389.85M293.60M
Operating Cash Flow1.24B1.06B753.50M312.64M393.85M295.67M
Investing Cash Flow-4.32M-86.77M214.58M-356.56M-55.10M-97.07M
Financing Cash Flow-513.99M-318.59M-162.34M-139.59M-29.83M72.85M

Newborn Town Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.13
Price Trends
50DMA
11.95
Negative
100DMA
11.24
Negative
200DMA
8.99
Positive
Market Momentum
MACD
-0.43
Positive
RSI
35.37
Neutral
STOCH
11.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9911, the sentiment is Negative. The current price of 10.13 is below the 20-day moving average (MA) of 11.05, below the 50-day MA of 11.95, and above the 200-day MA of 8.99, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 11.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9911.

Newborn Town Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
HK$15.06B16.9644.82%42.31%21.65%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
59
Neutral
HK$50.86B17.8524.41%-4.23%108.65%
57
Neutral
HK$12.14B55.378.42%22.86%5105.88%
56
Neutral
$6.23B-67.86-8.12%3.97%-211.11%
51
Neutral
HK$28.87B-10.89-30.89%19.98%-9.04%
42
Neutral
$8.45B-5.30-55.81%-34.07%-29.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9911
Newborn Town Inc.
10.13
6.29
163.80%
HK:8083
China Youzan
0.19
0.08
67.83%
HK:3738
Vobile Group
4.90
1.38
39.20%
HK:2013
Weimob
2.15
0.41
23.56%
HK:9899
Cloud Music Inc.
214.60
93.00
76.48%
HK:3896
Kingsoft Cloud Holdings Ltd
6.07
3.86
174.66%

Newborn Town Inc. Corporate Events

Newborn Town Inc. Reports Strong Growth in 2025
Oct 23, 2025

Newborn Town Inc. reported significant growth in its social networking and innovative business segments for the first three quarters of 2025. The social networking business saw a 34.5% to 36.4% increase in revenue compared to the previous year, driven by AI-enhanced social products. Meanwhile, the innovative business experienced a 69.9% to 76.3% rise in revenue, attributed to the development of its traffic diversion, social e-commerce, and short drama businesses.

The most recent analyst rating on (HK:9911) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Newborn Town Inc. stock, see the HK:9911 Stock Forecast page.

Newborn Town Inc. Announces Board Changes with New Director Appointment
Aug 29, 2025

Newborn Town Inc. announced the resignation of Mr. GAO Ming as an independent non-executive director and member of the audit and remuneration committees, effective August 29, 2025, as he pursues other career opportunities. The company has appointed Mr. CHEN Yuyu as the new independent non-executive director, bringing his extensive academic and professional experience in economics to the board, which aligns with the company’s development goals and growth strategies.

The most recent analyst rating on (HK:9911) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Newborn Town Inc. stock, see the HK:9911 Stock Forecast page.

Newborn Town Inc. Announces Board Composition and Roles
Aug 29, 2025

Newborn Town Inc. has announced the composition of its board of directors and their respective roles within the company. The board includes both executive and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder relations.

The most recent analyst rating on (HK:9911) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Newborn Town Inc. stock, see the HK:9911 Stock Forecast page.

Newborn Town Inc. Reports Robust Financial Growth in H1 2025
Aug 28, 2025

Newborn Town Inc. reported significant financial growth for the first half of 2025, with a 40% increase in revenue to RMB3,181.3 million and a 55.6% rise in gross profit to RMB1,775.1 million compared to the same period in 2024. The company’s profit attributable to equity shareholders surged by 117.8%, indicating strong operational performance and enhanced shareholder value.

The most recent analyst rating on (HK:9911) stock is a Hold with a HK$11.50 price target. To see the full list of analyst forecasts on Newborn Town Inc. stock, see the HK:9911 Stock Forecast page.

Newborn Town Inc. Announces Board Meeting for Interim Results Review
Aug 18, 2025

Newborn Town Inc. has announced that its board of directors will meet on August 28, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025, and to consider the recommendation of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting stakeholders’ perspectives on the company’s operational health and market positioning.

Newborn Town Inc. Relocates Hong Kong Office
Aug 15, 2025

Newborn Town Inc. has announced a change in the location of its principal place of business in Hong Kong. Effective August 15, 2025, the company will relocate to Unit 701, 7/F, Building 20E Phase Three, Hong Kong Science Park, Pak Shek Kok, Sha Tin, New Territories. This move signifies a strategic shift that may align with the company’s future growth plans and operational strategies, potentially impacting its stakeholders and market presence.

Newborn Town Inc. Reports Robust Growth in H1 2025
Aug 6, 2025

Newborn Town Inc. has announced a significant increase in its financial performance for the first half of 2025, with expected revenue growth of up to 41.5% and profit growth of up to 126.7% compared to the previous year. This growth is attributed to the expansion of its AI-driven social products and the acquisition of NBT Social Networking Inc., which has positively impacted the company’s financial results.

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.Date of analysis: Oct 29, 2025