Investment Rating - The report upgrades the investment rating to "Buy" with a target price of HKD 7.05, reflecting an expected relative return of over 20% within the next six months [3][4]. Core Insights - The company has shown impressive growth in its social business, with cumulative downloads reaching approximately 780 million, a 5.7% increase from the previous quarter. Monthly active users reached about 31.74 million, a 9.5% quarter-on-quarter growth. Total revenue from the social business is expected to be between RMB 4.52 billion and RMB 4.72 billion, representing a year-on-year growth of approximately 54.3% to 61.1% [1]. - The company's innovative business segment, which includes e-commerce and premium games, is projected to generate total revenue of RMB 440 million to RMB 480 million, reflecting a year-on-year growth of about 16.1% to 26.6%. The premium game "Alice's Dream" has significantly contributed to this growth, achieving a revenue of approximately RMB 705 million, a year-on-year increase of about 80.4% [2]. Summary by Sections Social Business Performance - The social business has achieved substantial growth, driven by AI technology and strategic acquisitions. The revenue growth trajectory indicates a successful implementation of the company's strategies, with projections showing a significant increase from previous years [1]. Innovative Business Development - The innovative business segment is expanding, with e-commerce and premium games contributing to revenue growth. The focus on emerging markets allows the company to avoid intense competition in mainstream markets while leveraging successful strategies from established players [2]. Financial Projections - Revenue forecasts for FY2024 to FY2026 have been adjusted, with total revenue expected to be RMB 5.08 billion, RMB 5.86 billion, and RMB 6.76 billion respectively. Net profit estimates have also been revised, indicating a strong financial outlook for the company [3].
赤子城科技（09911）事件点评：业绩盈喜，新兴市场多点开花