HK Stock Market Move | NEWBORNTOWN(09911) rises over 10% AI-driven innovative business high growth Company valuation has room for upward improvement

NEWBORNTOWN (09911) rose more than 10%, as of drafting, the increase was 9.69%, at 8.72 Hong Kong dollars, with a trading volume of 216 million Hong Kong dollars. On the news front, in the first quarter of this year, NEWBORNTOWN achieved innovative business revenue of about 245-265 million RMB, a year-on-year growth of about 46.7%-58.7%, demonstrating strong development momentum. The announcement indicated that the high growth of innovative business was mainly benefited from the short drama business actively invested in by the company under the drive of AI achieving rapid growth. During the reporting period, the company's short drama business progressed in an orderly manner, and at the same time, the company actively deployed AI short dramas, relying on AI technology to amplify content production capacity, enrich genre types, optimize production costs, and drive short dramas to become a new growth driver for innovative business. Guoyuan International believes that the company is still a leading entertainment social outbound platform, and its diversified monetization model has taken shape. Firstly, the social business continues to successfully incubate new products, and the innovative business sector has formed a multi-engine monetization model, including premium game in-app purchases and advertising, short drama pay-per-view and advertising, and social e-commerce selling health products and services. If the company can continue to achieve breakthroughs in overseas markets while performing well in the stable Middle East market, its valuation logic will shift from a social product company to a social entertainment platform with global operational capabilities, and its valuation will have room for upward growth.