Company Dynamics - The company recently conducted a non-trading roadshow where management shared developments in new business areas such as social media, short dramas, and games, along with future strategic outlooks [1] - MICO has stabilized, with SUGO and TopTop continuing to show high growth in user acquisition and revenue. The company expects operational efficiency to improve following organizational adjustments, with revenue stabilizing quarter-on-quarter and YoHo maintaining year-on-year growth [1] Revenue and Growth Projections - The company anticipates a 30% year-on-year increase in social revenue for the second half of the year, driven by the expansion of SUGO and TopTop, which are expected to remain core growth drivers [1] - The company has a significant pipeline of new products, with one expected to reach flagship revenue levels, potentially supporting income in the coming years [1] Strategic Exploration - The company is steadily advancing in short dramas and games. For short dramas, it is exploring global distribution through self-developed and acquired content, currently in an investment phase with manageable losses [2] - In gaming, the main product, a mobile game titled "Alice's Dream," is entering a recovery phase, with new games expected to launch in the first half of 2026, contributing to incremental revenue [2] AI and Operational Efficiency - The company is leveraging AI technology and refined operations to enhance profitability while expanding. It aims to balance growth investments with profit release based on different product development stages [2] - The company maintains a revised net profit estimate of 1.1 billion yuan for the year, with expectations for operational leverage optimization, particularly for SUGO and TopTop as they mature [2] Earnings Forecast and Valuation - The company maintains its revenue and profit forecasts for 2025 and 2026, with a target price of HKD 14.5, corresponding to a 14x 2026 Non-IFRS P/E ratio, indicating a 38% upside from current trading levels [2]
赤子城科技(09911.HK)：社交基本盘增势良好 布局短剧等新赛道