Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported a revenue of RMB 2.27 billion for the first half of 2024, representing a year-on-year increase of 65.3%, with a net profit attributable to shareholders of RMB 220 million, up 21.3% year-on-year [1] - The acquisition of a minority stake in NBT is expected to enhance future net profit attributable to shareholders [1] - The company has seen rapid growth in both social and innovative business segments, with social business revenue increasing by 66.5% to RMB 2.07 billion in the first half of 2024 [1] Financial Performance Summary - Total revenue (in million RMB) for 2022A, 2023A, 2024E, 2025E, and 2026E is projected at 2800, 3308, 4586, 5090, and 5656 respectively, with year-on-year growth rates of 18.60%, 18.15%, 38.64%, 10.99%, and 11.11% [1] - Net profit attributable to shareholders (in million RMB) for the same periods is forecasted at 130.14, 512.85, 346.63, 701.21, and 800.32, with year-on-year growth rates of 145.46%, 294.09%, (32.41)%, 102.29%, and 14.13% [1] - The adjusted EBITDA for the first half of 2024 was RMB 450 million, reflecting a year-on-year increase of 29.2% [1] Business Growth Highlights - The company’s social business has achieved significant growth, with products like MICO, YoHo, SUGO, and TopTop entering the top 10 revenue rankings for social applications in the Middle East [1] - The innovative business segment also showed strong performance, with revenue growth of 53.7% to RMB 200 million in the first half of 2024 [1] - The acquisition of NBT is expected to integrate its financial performance into the company's consolidated financial statements, potentially boosting profitability [1]
赤子城科技：后发产品快速增长，收购NBT少数股权有望增厚归母净利润