Core Viewpoint - The report from West Cow Securities maintains a "Buy" rating for ZhiZi City Technology (09911) with a target price of HKD 13.20, reflecting confidence in the company's business resilience and future recovery despite recent stock price adjustments due to legal disputes [1] Group 1: Financial Performance - The company expects total revenue for the fiscal year 2025 to be between RMB 6.8 billion and RMB 7.0 billion [1] - For the nine months ending September 2025, the social networking business revenue is projected to be approximately RMB 4.38 billion to RMB 4.44 billion, representing a year-on-year growth of about 34.5% to 36.4% [1] - The average monthly active users for the social networking business in Q3 2025 are expected to reach approximately 34.08 million, a 0.7% increase from the previous quarter [1] - The innovative business revenue is anticipated to be around RMB 530 million to RMB 550 million, with a year-on-year growth of approximately 69.9% to 76.3% [1] Group 2: Business Development - The company’s innovative business diversification has led to an increase in profit margins, with an estimated revenue of RMB 190 million for Q3 2025, marking a record for a single quarter [2] - Growth in the innovative business is primarily driven by traffic monetization and the expansion of social e-commerce [2] - The success of premium games like "Alice's Dream" continues to enhance overall profit margins, supported by the company's ability to replicate monetization models and innovate new gameplay [2]
西牛证券：维持赤子城科技“买入”评级 目标价13.2港元