Core Viewpoint - The report from Citi initiates coverage of Zhizi 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] Group 1: Financial Projections - Citi forecasts a compound annual growth rate (CAGR) of 24% for the company's revenue over the next three years, reaching RMB 9.8 billion by the fiscal year 2027 [1] - The total revenue from the broad audience business is projected to be RMB 7.9 billion, while the diversified audience business is expected to generate RMB 1.1 billion, and the innovative business is anticipated to contribute RMB 0.9 billion [1] - The report anticipates an expansion of the gross margin to 57% by fiscal year 2027, up from 51% in 2024, with an adjusted EBITDA margin expected to reach 18% based on stable sales and market cost ratios around 32% over the next three years [1] Group 2: Business Model and Strategy - The company's agile and asset-light business model allows for high returns on equity and reliable cash flow generation [1] - The product strategy is driving revenue growth through diversified applications, leveraging the company's early market entry advantages [1]
里昂：首次覆盖赤子城科技予“跑赢大市”评级 目标价17.5港元