Lyon: NEWBORNTOWN (09911) income growth meets expectations, rating outperforms the overall market.

Lyon released a research report stating that NEWBORNTOWN (09911) released stable operating and revenue data for 2025. The total revenue year-on-year growth range is 32.8% to 37.5%, with the mid-point matching market consensus and the bank's expected year-on-year growth of 35.5%. It outperforms the market, with a target price of HK$17.5. Lyon stated that its growth in the last quarter was strong, with the mid-point of total revenue equivalent to a year-on-year growth of 28% and a quarterly growth of 7%, reaching RMB 1.93 billion, compared to year-on-year growth of 36% and 39% in the second and third quarters. The mid-point of social network revenue in the fourth quarter increased by 26% year-on-year to RMB 1.72 billion, mainly benefiting from the steady growth of multiple social products (monthly active users increased by 11% to 35 million) and the application of AI tools. The mid-point of innovative business revenue in the fourth quarter increased by 40% year-on-year to RMB 210 million, mainly driven by traffic diversion, e-commerce, and short video business.