Newborn Town Inc. (HK:9911)
:9911
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Newborn Town Inc.
(9911)
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Rating:71Outperform
Price Target:
HK$10.50
▼(-11.54% Downside)
Action:ReiteratedDate:04/09/26
The score is driven by strong financial performance (profitability improvements, very low leverage, and robust free cash flow), supported by a reasonable P/E valuation. This is partially offset by weak technical signals (negative MACD, below key moving averages, and soft RSI), which reduce near-term confidence despite solid fundamentals.
Positive Factors
Strong Free Cash Flow
Consistent, sizable free cash flow that closely tracks net income supports durable self-funding for R&D, M&A or shareholder returns. Sustained FCF reduces financing reliance and underpins long-term strategic flexibility even if revenue growth moderates.
Negative Factors
Earnings & Margin Volatility
Material swings in profitability and a prior loss suggest earnings are sensitive to business-cycle, product mix or cost dynamics. Such volatility complicates multi-quarter forecasting and capital allocation decisions, raising long-term predictability risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Free Cash Flow
Consistent, sizable free cash flow that closely tracks net income supports durable self-funding for R&D, M&A or shareholder returns. Sustained FCF reduces financing reliance and underpins long-term strategic flexibility even if revenue growth moderates.
Read all positive factors
Newborn Town Inc. (9911) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$13.15B
Dividend YieldN/A
Average Volume (3M)4.06M
Price to Earnings (P/E)14.0
Beta (1Y)1.59
Revenue Growth42.31%
EPS Growth21.65%
CountryHK
Employees1,573
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)N/A
Shares Outstanding1,412,958,400
10 Day Avg. Volume3,806,924
30 Day Avg. Volume4,062,158
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)5.23
Price to Sales (P/S)1.90
P/FCF Ratio9.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$13.61Price Target Upside14.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Newborn Town Inc. Business Overview & Revenue Model
Company Description
Newborn Town Inc., an investment holding company, operates as a mobile applications developer and mobile advertising platform services provider worldwide. The company provides live streaming services through social networking platform; and mobile ...
How the Company Makes Money
null...
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 | 6.71B | 5.09B | 3.31B | 2.80B | 2.36B |
| Gross Profit | 3.75B | 2.61B | 1.72B | 1.06B | 1.00B |
| EBITDA | 996.07M | 886.05M | 858.22M | 291.38M | -337.03M |
| Net Income | 910.35M | 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
Neutral
11.87
Price Trends
9.92
Negative
10.31
Negative
10.78
Negative
Market Momentum
-0.43
Negative
51.57
Neutral
65.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9911, the sentiment is Neutral. The current price of 11.87 is above the 20-day moving average (MA) of 9.15, above the 50-day MA of 9.92, and above the 200-day MA of 10.78, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 65.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$13.15B | 14.00 | 41.82% | ― | 42.31% | 21.65% | |
67 Neutral | HK$27.95B | 13.17 | 23.66% | ― | -4.23% | 108.65% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | HK$10.18B | 49.57 | 6.99% | ― | 22.86% | 5105.88% | |
58 Neutral | HK$4.17B | 24.36 | -8.12% | ― | 3.97% | -211.11% | |
54 Neutral | HK$35.89B | -22.29 | -13.37% | ― | 23.96% | 55.68% | |
42 Neutral | HK$6.52B | -27.95 | -66.11% | ― | -34.07% | -29.27% |
* Technology Sector Average
HK:9911
Newborn Town Inc.
9.31
4.05
77.00%
HK:8083
China Youzan
0.13
0.04
51.19%
HK:3738
Vobile Group
3.96
0.80
25.32%
HK:2013
Weimob
1.59
0.09
5.93%
HK:9899
NetEase Cloud Music Inc.
132.60
-5.90
-4.26%
HK:3896
Kingsoft Cloud Holdings Ltd
7.92
1.35
20.55%
Newborn Town Inc. Corporate Events
Newborn Town Plans HK$300 Million Buyback to Signal Confidence and Reward Shareholders
Mar 26, 2026
Newborn Town Inc. has announced plans to conduct on-market share repurchases on the Hong Kong Stock Exchange over the next two years, with an intended aggregate amount of about HK$300 million. The buybacks will be executed under annually renewed m...
Newborn Town Profit Nearly Doubles on Robust 2025 Revenue Growth
Mar 26, 2026
Newborn Town Inc. reported strong audited results for the year ended 31 December 2025, with revenue rising 35.3% year on year to RMB6.89 billion and gross profit jumping 47.5% to RMB3.85 billion. Profit attributable to equity shareholders nearly d...
Newborn Town Grants HK$100 Million in RSUs Without Diluting Shareholders
Mar 26, 2026
Newborn Town Inc. has approved the grant of 12,747,486 restricted share units to 80 participants under its RSU Award Scheme, representing about 0.90% of its issued share capital but with no new shares to be issued, thereby avoiding dilution for ex...
Newborn Town flags sharp 2025 profit jump on AI-driven social growth
Mar 4, 2026
Newborn Town Inc. has issued a profit alert indicating strong preliminary results for 2025, projecting group revenue of about RMB6.76 billion to RMB7.0 billion, up roughly a third from 2024, driven by deeper deployment of AI technology and steady ...
Newborn Town Sets March Board Meeting to Approve 2025 Results and Weigh Dividend
Mar 2, 2026
Newborn Town Inc. has scheduled a board meeting for 26 March 2026 to review and approve the annual results for the year ended 31 December 2025 and arrange for their publication. The board will also consider whether to recommend a final dividend, a...
Newborn Town Forecasts Double-Digit Revenue Growth on AI-Driven Social and Innovative Businesses in 2025
Jan 21, 2026
Newborn Town Inc. reported strong unaudited operating metrics for 2025, with its social networking business reaching approximately 970 million cumulative downloads by year-end and average monthly active users of about 35.3 million in the fourth qu...
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.