Core Viewpoint - Citi has initiated coverage on Zhitu City Technology (09911) with an "Outperform" rating and a target price of HKD 17.5, highlighting the company's early mover advantage and operational moat that drive revenue growth from diversified applications [1] Financial Projections - The report anticipates a compound annual growth rate (CAGR) of 24% for revenue and 27% for core EBIT from 2025 to 2027 [1] - Revenue is projected to reach RMB 9.8 billion by the fiscal year 2027, with total revenue from the broad audience business estimated at RMB 7.9 billion, diversified audience business at RMB 1.1 billion, and innovative business at RMB 0.9 billion [1] Profitability Expectations - Gross margin is expected to expand to 57% by fiscal year 2027, up from 51% in 2024 [1] - Adjusted EBITDA margin is projected to reach 18% by 2027, based on stable sales and market cost ratios around 32% over the next three years [1]
里昂：首次覆盖赤子城科技(09911)予“跑赢大市”评级 目标价17.5港元