Core Viewpoint - Multiple securities firms have issued reports maintaining a "buy" rating for the global open social company, Chizi City Technology (09911.HK), highlighting strong performance expectations for 2024 driven by AI technology and a robust product matrix [1][2][7]. Financial Performance - Chizi City Technology reported a 53.9% year-on-year increase in revenue for 2024, reaching 5.09 billion RMB, with adjusted EBITDA growing by 43% to 960 million RMB [1]. - Social business revenue was 4.6 billion RMB, up 58% year-on-year, with flagship products MICO and YoHo showing steady growth, while newer products TopTop and SUGO saw revenue increases of over 100% and 200%, respectively [1][2]. AI Empowerment and Product Development - The company has developed a multi-modal algorithm model, Boomiix, which enhances operational efficiency across research, design, and marketing [2]. - The ARPU for SUGO is projected to increase by over 20% by the end of 2024, indicating significant improvements in commercialization efficiency [2]. Market Expansion and Innovation - Chizi City Technology is focusing on the MENA market, with core product revenue in the region growing over 60%, contributing to more than 50% of total revenue [3]. - The company has received a regional headquarters license in Saudi Arabia, further solidifying its market position [3]. Profitability and Return on Equity - The company achieved a remarkable ROE of 47.6% in 2024, indicating strong profitability and a high return on shareholder investment [5]. - The focus on virtual consumption through in-app purchases and membership services provides a buffer against external trade impacts [4]. Stock Buyback and Future Outlook - Chizi City Technology has announced a stock buyback plan of up to 200 million HKD over the next two years, reflecting management confidence and a strong financial position [6]. - Analysts have adjusted earnings forecasts upward, with target prices ranging from 7.25 HKD to 8.87 HKD, based on strong growth prospects and market performance [6][7].
多家机构持续看好赤子城科技长期价值，华泰证券给予最新目标价8.87港元