Newborn Town Inc. (9911) AI Stock Analysis

• Market Cap: HK$19.61B
• Dividend Yield: N/A
• Average Volume (3M): 4.06M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 1.43
• Revenue Growth: 42.31%
• EPS Growth: 21.65%
• Country: HK
• Employees: 1,573
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): N/A
• 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$15.14
• Price Target Upside: 27.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: HK$15.50 ▲(30.58% Upside)

The score is driven primarily by strong financial performance (rapid revenue growth, solid margins, and strong free cash flow) and a clear upward technical trend. However, momentum appears overextended (high RSI/Stoch), and valuation support is only moderate with no dividend yield provided.

Positive Factors

High revenue growth

Sustained 54% year‑over‑year revenue growth signals strong product-market fit and scalable user monetization. Over a multi-quarter horizon this supports reinvestment in product and marketing, enabling durable top-line expansion and reduced reliance on one-off gains.

Robust profitability margins

High gross margin and healthy EBIT/net margins indicate unit economics that can absorb marketing and R&D spend while preserving profitability. These structural margins support long-term cash generation and competitive pricing flexibility as the business scales.

Strong cash generation and FCF growth

Operating cash flow well above reported income and FCF up ~42% demonstrate durable internal funding for capex, buybacks, or acquisitions. Reliable cash conversion reduces external financing needs and enhances strategic optionality over the next several quarters.

Negative Factors

Rising liabilities and slight net income decline

Trend of rising liabilities alongside a slight net income decline could pressure financial flexibility if continued. Over months this may raise interest or refinancing risk and constrain capital allocation, potentially limiting investment in growth initiatives.

Revenue reliance on engagement-driven streams

Heavy dependence on in‑app purchases, ads, and subscriptions ties revenue to user engagement and ad pricing cycles. Structurally, adverse shifts in user behavior, platform policy, or ad markets can materially reduce monetization over a multi‑quarter horizon.

Concentrated exposure to social networking & gaming

Concentration in mobile social networking and online gaming places the company in fiercely competitive, fast‑evolving markets where user acquisition costs and product churn are structural challenges. Sustaining share requires continuous innovation and elevated marketing spend.

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 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: Positive
• Last Price: 11.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 11.87 is below the 20-day moving average (MA) of 11.98, above the 50-day MA of 10.59, and above the 200-day MA of 10.29, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 76.13 is Negative, neither overbought nor oversold. The STOCH value of 91.29 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9911	75 Outperform	HK$19.61B	21.93	44.82%	―	42.31%	21.65%
9899	62 Neutral	HK$39.12B	13.42	24.41%	―	-4.23%	108.65%
3738	62 Neutral	HK$12.88B	55.48	8.42%	―	22.86%	5105.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8083	52 Neutral	HK$4.99B	-53.93	-8.12%	―	3.97%	-211.11%
2013	52 Neutral	HK$9.54B	-5.68	-55.81%	―	-34.07%	-29.27%
3896	52 Neutral	HK$29.59B	-23.62	-15.92%	―	23.96%	55.68%

Newborn Town Inc. Corporate Events

Newborn Town Inc. Completes Additional Share Purchases in RSU Award Scheme

Newborn Town Inc. announced the completion of additional share purchases under its RSU Award Scheme, acquiring 532,000 shares between December 11 and 17, 2025. This move reflects the company’s confidence in its business outlook and commitment to long-term value creation for shareholders while maintaining a solid financial position.

The most recent analyst rating on (HK:9911) stock is a Buy 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 Share Purchase Under RSU Award Scheme

Newborn Town Inc. has announced a share purchase under its RSU Award Scheme, with Three D Partners Limited acquiring a total of 2,724,000 shares during the relevant period. The Board believes this move reflects confidence in the company’s business outlook and will ultimately benefit shareholders, while maintaining a strong financial position.

The most recent analyst rating on (HK:9911) stock is a Hold with a HK$10.00 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. Strengthens Market Position with Strategic Share Purchase

Newborn Town Inc. has announced the purchase of 2,144,000 shares through Three D Partners Limited as part of its RSU Award Scheme, reflecting the company’s confidence in its business outlook. This move is intended to bolster shareholder value and is supported by the company’s solid financial resources, allowing for continued strategic share acquisitions.

The most recent analyst rating on (HK:9911) stock is a Hold with a HK$10.00 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. Updates Logo and Provides Annual Report Supplement

Newborn Town Inc. has announced a change in its company logo, which will be reflected in all corporate documents moving forward. This change will not impact shareholders’ rights or the validity of existing share certificates. Additionally, the company provided supplemental information regarding its 2024 Annual Report, specifically about the NBT RSU Scheme, indicating that all shares related to awards granted in 2024 have been issued and transferred.

The most recent analyst rating on (HK:9911) stock is a Hold with a HK$10.00 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. Enhances Shareholder Value Through Strategic Share Purchase

Newborn Town Inc. announced a share purchase under its RSU Award Scheme, with Three D Partners Limited acquiring an additional 2,052,000 shares, representing approximately 0.15% of the total shares in issue. This move reflects the company’s confidence in its business outlook and aims to create value for shareholders while maintaining a strong financial position.

The most recent analyst rating on (HK:9911) stock is a Hold with a HK$10.00 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. Enhances Shareholder Value with Strategic Share Purchase

Newborn Town Inc. announced a share purchase under its RSU Award Scheme, where Three D Partners Limited acquired an additional 1,612,000 shares, representing approximately 0.11% of the total shares in issue. This move reflects the company’s confidence in its business outlook and is expected to create value for shareholders while maintaining a solid financial position.

The most recent analyst rating on (HK:9911) stock is a Hold with a HK$10.00 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 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.