Newborn Town Inc. (9911) AI Stock Analysis

• Market Cap: HK$14.35B
• Dividend Yield: N/A
• Average Volume (3M): 10.17M
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.37
• Revenue Growth: 51.54%
• EPS Growth: -11.81%
• Country: HK
• Employees: 1,573
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 0.43
• Shares Outstanding: 1,412,474,400
• 10 Day Avg. Volume: 9,008,543
• 30 Day Avg. Volume: 10,166,659
• PEG Ratio: -0.11
• Price to Book (P/B): 2.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.32
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: HK$12.00 ▲(13.21%Upside)

Newborn Town Inc. exhibits strong financial performance and positive technical indicators, supporting its stock position. The reasonable valuation further solidifies its potential attractiveness to investors. The absence of earnings call data and corporate events limits additional context, but the company's overall financial robustness and current stock momentum provide a solid foundation.

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 marketing and advertising services through various mobile applications, as well as support services. It also offers Solo X product matrix; Solo Math, a programmatic mobile advertising platform; and Solo Aware, an artificial intelligence (AI) engine. The company was founded in 2009 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Newborn 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

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: 10.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 10.6 is above the 20-day moving average (MA) of 10.26, above the 50-day MA of 9.44, and above the 200-day MA of 5.55, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 59.67 is Neutral, neither overbought nor oversold. The STOCH value of 77.35 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	76 Outperform	HK$14.35B	24.78	36.24%	―	51.54%	-11.81%
Sector *	69 Neutral	¥228.59B	14.33	7.64%	2.71%	9.13%	8.49%
CHNVF		$392.96M	―	-16.87%	―	―	―
VOBIF		$1.03B	61.11	7.04%	―	―	―
WEMXF		$825.85M	―	-77.88%	―	―	―
9899	67 Neutral	HK$51.78B	30.57	16.82%	―	-0.89%	110.44%
3896	47 Neutral	HK$26.17B	―	-33.05%	―	13.37%	3.82%

Newborn Town Inc. Corporate Events

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.

Newborn Town Inc. Proposes Governance Amendments

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

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

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

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.