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

Newborn Town Inc. (9911) AI Stock Analysis

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HK

Newborn Town Inc.

(9911)

Rating:76Outperform
Price Target:
HK$12.00
▲(11.11%Upside)
The overall stock score reflects Newborn Town Inc.'s strong financial performance and positive technical indicators. The company's effective cash flow management and low debt enhance its financial stability, supporting potential growth. However, a moderately high P/E ratio and lack of dividend yield suggest the stock is priced for growth, necessitating continued operational execution to justify its valuation.

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 leading technology company specializing in the development and operation of mobile applications, primarily focusing on social networking and interactive entertainment. The company is renowned for its innovative social products that connect users worldwide, fostering communication and engagement through a diverse range of apps available on multiple platforms.
How the Company Makes MoneyNewborn Town Inc. generates revenue primarily through its portfolio of mobile applications. The company employs a freemium model for many of its apps, offering basic services for free while charging for premium features or virtual goods. Advertising is another critical revenue stream, with the company leveraging its large user base to attract advertisers. Additionally, Newborn Town Inc. benefits from strategic partnerships and collaborations that enhance its market presence and revenue potential. In-app purchases also play a significant role, allowing users to buy digital content or services within the apps to enhance their experience.

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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.09B3.31B2.80B2.36B1.18B
Gross Profit
2.61B1.72B1.06B1.00B757.52M
EBIT
728.92M551.11M249.16M-374.47M156.40M
EBITDA
886.05M858.22M291.38M-337.03M159.30M
Net Income Common Stockholders
480.31M512.85M130.13M-286.28M39.69M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.29B1.56B746.13M890.71M609.02M
Total Assets
3.58B2.79B1.72B1.62B1.27B
Total Debt
83.32M108.27M112.19M10.77M3.35M
Net Debt
-1.97B-1.28B-484.54M-713.82M-427.66M
Total Liabilities
1.93B843.36M482.21M782.33M481.16M
Stockholders Equity
1.54B1.12B707.82M476.80M536.47M
Cash FlowFree Cash Flow
1.05B743.56M301.74M389.85M293.60M
Operating Cash Flow
1.06B753.50M312.64M393.85M295.67M
Investing Cash Flow
-86.77M214.58M-356.56M-55.10M-97.07M
Financing Cash Flow
-318.59M-162.34M-139.59M-29.83M72.85M

Newborn Town Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.80
Price Trends
50DMA
8.25
Positive
100DMA
6.67
Positive
200DMA
5.04
Positive
Market Momentum
MACD
0.71
Negative
RSI
65.12
Neutral
STOCH
82.04
Negative
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 10.8 is above the 20-day moving average (MA) of 10.03, above the 50-day MA of 8.25, and above the 200-day MA of 5.04, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 82.04 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$15.62B25.2536.24%51.54%-11.81%
67
Neutral
HK$52.04B29.6316.82%-0.89%110.44%
62
Neutral
$11.80B10.08-7.46%2.99%7.37%-8.21%
55
Neutral
$3.38B-16.87%-2.35%-837.50%
54
Neutral
HK$28.99B-33.05%13.37%3.82%
45
Neutral
HK$6.55B-77.88%-41.17%-103.00%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9911
Newborn Town Inc.
10.80
6.72
164.71%
HK:3896
Kingsoft Cloud Holdings Ltd
6.81
5.27
342.21%
HK:9899
Cloud Music Inc.
240.20
139.70
139.00%
HK:2013
Weimob
1.75
0.23
15.13%
HK:8083
China Youzan
0.10
0.01
16.87%

Newborn Town Inc. Corporate Events

Newborn Town Inc. Secures Shareholder Approval for Key Resolutions at AGM
May 21, 2025

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
May 21, 2025

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
Apr 28, 2025

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
Apr 25, 2025

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.

Newborn Town Inc. Proposes Governance Amendments
Apr 24, 2025

Newborn Town Inc., a company incorporated in the Cayman Islands, has announced proposed amendments to its existing memorandum and articles of association. These changes aim to align with the latest regulatory requirements related to a paperless listing regime and hybrid general meetings, as well as to make certain housekeeping amendments. The adoption of the amended memorandum and articles of association is intended to facilitate electronic voting and modernize the company’s governance structure.

Newborn Town Inc. Reports Strong Q1 2025 Growth in Social Networking and Innovative Segments
Apr 24, 2025

Newborn Town Inc. reported substantial growth in its social networking and innovative businesses for the first quarter of 2025. The social networking segment saw a 39.1% to 44.3% increase in revenue year-on-year, driven by AI-enhanced products, while the innovative business experienced a 66.7% to 88.2% rise, supported by social e-commerce and niche games.

Newborn Town Inc. Completes Share Purchase to Boost Shareholder Value
Apr 17, 2025

Newborn Town Inc. announced the completion of a share purchase under its RSU Award Scheme, with Three D Partners Limited acquiring 2,272,000 shares between April 14 and April 17, 2025. This move, representing approximately 0.16% of the total shares, reflects the company’s confidence in its business outlook and aims to create value for shareholders while maintaining a solid financial position.

Newborn Town Inc. Strengthens Market Position with Strategic Share Purchase
Apr 11, 2025

Newborn Town Inc. announced a share purchase under its RSU Award Scheme, with Three D Partners Limited acquiring a total of 8,170,000 shares. This move, representing approximately 0.58% of the existing shares, reflects the company’s confidence in its business outlook and aims to create value for shareholders while maintaining a strong financial position.

Newborn Town Inc. Completes Share Purchase Under RSU Award Scheme
Apr 3, 2025

Newborn Town Inc. has announced the completion of a share purchase under its RSU Award Scheme, with Three D Partners Limited acquiring a total of 2,578,000 shares between March 31 and April 3, 2025. This move, which represents approximately 0.18% of the company’s existing shares, reflects the company’s confidence in its business outlook and aims to create value for shareholders while maintaining a solid financial position.

Newborn Town Inc. Boosts Shareholder Value with Strategic Share Purchase
Mar 28, 2025

Newborn Town Inc. announced the purchase of 2,096,000 shares by Three D Partners Limited as part of its RSU Award Scheme, reflecting the company’s confidence in its business outlook. The purchase, which represents approximately 0.15% of the total shares, is part of a broader strategy to enhance shareholder value while maintaining a strong financial position.

Newborn Town Inc. Reports Robust Financial Growth in 2024
Mar 20, 2025

Newborn Town Inc. reported significant financial growth for the year ended December 31, 2024, with a 53.9% increase in revenue to RMB5,091.5 million and a 51.4% rise in gross profit to RMB2,607.7 million. Despite a slight decrease in profit attributable to equity shareholders, the company’s adjusted EBITDA rose by 42.8%, indicating strong operational performance and strategic growth, which may positively impact its market positioning.

Newborn Town Inc. Announces HK$200 Million Share Purchase Plan
Mar 20, 2025

Newborn Town Inc. has announced its intention to allocate up to HK$200 million over the next two years to purchase shares on the market as part of its share schemes. This move is aimed at recognizing and retaining contributors to the company’s performance and is seen as a demonstration of confidence in its business outlook, ultimately benefiting shareholders and maintaining a solid financial position.

Newborn Town Inc. Grants Over 30 Million RSUs to Align Stakeholder Interests
Mar 20, 2025

Newborn Town Inc. announced the grant of 30,316,184 Restricted Share Units (RSUs) to 76 grantees as part of its RSU Award Scheme. This grant, which represents approximately 2.15% of the company’s issued share capital, will not dilute existing shareholders’ holdings. The RSUs are subject to a lock-up period and will vest over time, with the first unlocking occurring within six months of the grant. The market value of these RSUs is estimated to be between HK$182.14 million and HK$196.15 million, based on recent stock prices. This move is expected to align the interests of the grantees with the company’s long-term goals and enhance its competitive positioning in the market.

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.