HK Stock Market Move | DUIBA (01753) extends gains to over 45%; AI short dramas profitable for three consecutive months; AI-Native content platform opens up growth space.

DUIBA (01753) accelerated its rally in the afternoon, with gains widening to over 45%. As of press time, it is up 42.95% at HK$1.065, with a turnover of HK$51.18 million. On the news front, DUIBA recently disclosed that its AI short drama business recorded net profit for three consecutive months in July, August, and September. In the third quarter, newly added viewership across all platforms exceeded 45.8 billion, more than nine times the cumulative 5 billion in the first half of the year. On a monthly basis, new views reached 6.8 billion in July, 12.6 billion in August, and 26.4 billion in September, with month-on-month growth exceeding 100% for three consecutive months. The number of hit dramas with over 100 million views increased from 22 in July to 32 in September, with the highest hit rate for 100-million-view dramas reaching 5.7%, more than 10 times the industry average for DUIBA. Currently, the company's positioning has shifted from a loyalty points SaaS company to an AI-Native content platform. Its core competitiveness is not any single hit drama, but a full-process AI workflow covering everything from screenwriting to commercialization, along with a self-developed Agent matrix, turning production from individual talent into systematic replication. More importantly, this capability is continuing to replicate. Overseas, locally produced dramas have already been released on TikTok and YouTube, and a self-developed overseas theater app is planned for launch in the fourth quarter. On WeChat, it is understood that the company has already launched operations and is supporting them with targeted traffic investment and heating for Video Accounts, with significant growth. According to a Guosen exchange meeting summary, DUIBA's gross margin was 17.1% and net margin was -5.8% in the first half of 2026, weighed down by investment in short drama infrastructure and business expansion. However, based on single-month revenue exceeding RMB 100 million in June 2026 and the latest announcement confirming profitability of the AI short drama business in the third quarter, DUIBA is expected to post revenue of no less than RMB 800 million in the second half of 2026 and no less than RMB 1.2 billion for the full year, with the full year expected to achieve break-even or profitability.