Guosen: NEWBORNTOWN (09911) has strong resilience in the growth of short and medium-term products. First rating "outperform the market".

Guosen released a research report stating that considering NEWBORNTOWN (09911) is still in the blue ocean stage in its core market, with a rich and strong growth matrix in the short and medium term, performance growth significantly higher than the industry average level, giving the company a target price of 12.6 to 13.6 Hong Kong dollars, and initiating coverage with a "outperform" rating. With a deep layout of over 20 localized operating centers, NEWBORNTOWN has formed a unique bush product matrix, serving over 1 billion users in over 150 countries and regions worldwide, with a focus on the Middle East and North Africa radiating globally. The company's business is divided into core social networking business and innovative business. The bank stated that the company is expanding into emerging industries in the Middle East and North Africa, Southeast Asia, such as vertical social networking, diversified social networking, casual games, short dramas, etc. By replicating the bush product model for multiple products, the company has strong resilience in the short to medium term. Meanwhile, innovative businesses such as games and short dramas are expected to enter a period of performance realization. The company's diverse products have explosive potential as well as competitive risks, and it is recommended to continue monitoring the growth of products in emerging regions. Guosen forecasts the company's revenue for 2025 to 2027 to be 6.9 billion, 8.7 billion, and 10 billion Chinese yuan respectively, with year-on-year growth rates of 36%, 26%, and 14%, and a compound annual growth rate of 25%. Net profit attributable to shareholders is expected to be 950 million, 1.3 billion, and 1.6 billion yuan respectively, with year-on-year growth rates of 99%, 36%, and 23%.