Core Viewpoint - The report from CICC maintains the revenue and profit forecasts for ZhiZiCheng Technology (09911) for 2025 and 2026, with an outperform rating and a target price of HKD 14.5, indicating a 38% upside potential based on a 14x 2026 Non-IFRS P/E ratio [1] Group 1: Revenue and Growth - MICO has stabilized, with SUGO and TopTop continuing to show high growth in user acquisition and revenue. The company expects revenue to stabilize quarter-on-quarter, with YoHo revenue maintaining year-on-year growth. Mature product lines are contributing stable profits, while new products SUGO and TopTop are prioritizing user scale, showing double-digit growth in global MAU [2] - The company anticipates a 30% year-on-year increase in social revenue for the second half of the year, driven by regional expansion and a strong pipeline of new products, with one expected to reach flagship revenue levels [2] Group 2: Strategic Initiatives - Short dramas and games are being explored as strategic initiatives. The company is testing the global distribution of translated and self-produced dramas, currently in an investment phase with manageable losses, and sees potential for synergy with its social ecosystem [3] - The main product, the mobile game "Alice's Dream," is entering a recovery phase, expected to contribute stable profits, while new games are in testing and may launch in the first half of 2026, potentially adding incremental revenue [3] Group 3: Operational Efficiency and Profitability - The company is focused on ROI, balancing growth investment with profit release according to the product development stage. The adjusted net profit forecast for the year is set at 1.1 billion [4] - Looking ahead, there is potential for operational leverage optimization, with expectations of gradual profit release as the market and products mature [4]
中金：维持赤子城科技“跑赢行业”评级 目标价14.5港元