Newborn Town Inc. (9911) AI Stock Analysis

• Market Cap: HK$15.06B
• Dividend Yield: N/A
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): 17.0
• Beta (1Y): 1.52
• Revenue Growth: 42.31%
• EPS Growth: 21.65%
• Country: HK
• Employees: 1,573
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.21
• Shares Outstanding: 1,412,958,400
• 10 Day Avg. Volume: 3,806,924
• 30 Day Avg. Volume: 4,062,158
• PEG Ratio: -1.24
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 3.77
• 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$15.49
• Price Target Upside: 66.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: HK$10.00 ▲(7.18% Upside)

Newborn Town Inc. demonstrates strong financial performance with robust revenue growth and effective cash flow management, contributing positively to the stock score. However, the technical analysis indicates bearish momentum, which negatively impacts the overall score. The valuation is reasonable, but the lack of a dividend yield may limit its appeal to certain investors.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and successful product offerings, enhancing long-term business prospects.

Cash Generation

Robust cash flow growth supports financial flexibility, allowing for strategic investments and debt management, strengthening future operations.

Profit Margins

Strong profit margins reflect efficient cost management and pricing power, ensuring sustainable profitability and competitive advantage.

Negative Factors

Net Income Fluctuations

Fluctuating net income may indicate challenges in maintaining consistent profitability, potentially impacting long-term financial stability.

Increasing Liabilities

Rising liabilities could strain financial resources, limiting the company's ability to invest in growth opportunities and manage economic downturns.

Net Profit Margin Pressure

Pressure on net profit margins may indicate rising costs or competitive pressures, potentially affecting future earnings and financial health.

Newborn Town Inc. Business Overview & Revenue Model

Company Description

Newborn 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 Money

Newborn 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.00B	5.09B	3.31B	2.80B	2.36B	1.18B
Gross Profit	3.24B	2.61B	1.72B	1.06B	1.00B	757.52M
EBITDA	920.58M	886.05M	858.22M	291.38M	-337.03M	159.30M
Net Income	744.92M	480.31M	512.85M	130.13M	-286.28M	39.69M
Balance Sheet
Total Assets	3.89B	3.58B	2.79B	1.72B	1.62B	1.27B
Cash, Cash Equivalents and Short-Term Investments	2.37B	2.29B	1.56B	746.13M	890.71M	609.02M
Total Debt	111.87M	83.32M	108.27M	112.19M	10.77M	3.35M
Total Liabilities	1.76B	1.93B	843.36M	482.21M	782.33M	481.16M
Stockholders Equity	2.00B	1.54B	1.12B	707.82M	476.80M	536.47M
Cash Flow
Free Cash Flow	1.23B	1.05B	743.56M	301.74M	389.85M	293.60M
Operating Cash Flow	1.24B	1.06B	753.50M	312.64M	393.85M	295.67M
Investing Cash Flow	-4.32M	-86.77M	214.58M	-356.56M	-55.10M	-97.07M
Financing Cash Flow	-513.99M	-318.59M	-162.34M	-139.59M	-29.83M	72.85M

Newborn Town Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 9.33 is below the 20-day moving average (MA) of 9.64, below the 50-day MA of 10.94, and below the 200-day MA of 9.44, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 35.17 is Neutral, neither overbought nor oversold. The STOCH value of 33.04 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9911	65 Neutral	HK$15.06B	16.96	44.82%	―	42.31%	21.65%
9899	62 Neutral	HK$50.86B	17.85	24.41%	―	-4.23%	108.65%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
3738	56 Neutral	$11.32B	50.73	8.42%	―	22.86%	5105.88%
3896	51 Neutral	HK$28.87B	-10.89	-16.00%	―	24.16%	55.45%
8083	43 Neutral	$6.23B	-67.86	-8.12%	―	3.97%	-211.11%
2013	40 Underperform	$7.85B	―	-55.81%	―	-34.07%	-29.27%

Newborn Town Inc. Corporate Events

Newborn Town Inc. Reports Strong Growth in 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

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

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

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

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

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.