Core Viewpoint - The company reported strong revenue growth for the first three quarters of 2025, with total revenue expected to be between 49.1 and 49.9 billion yuan, representing a year-on-year increase of approximately 37.6% to 39.9% [1] Revenue Breakdown - Social business revenue is projected to be around 43.8 to 44.4 billion yuan, reflecting a year-on-year growth of about 34.5% to 36.4% [1] - Innovative business revenue is expected to be between 5.3 and 5.5 billion yuan, showing a significant year-on-year increase of approximately 69.9% to 76.3% [1] Business Performance - The company’s social business continues to grow steadily, benefiting from AI technology integration in its product matrix, enhancing user experience and operational efficiency [1] - A strategic partnership with Tencent Cloud was signed in September 2025 to explore the "AI + social entertainment" space [1] - The company’s core products have solidified their competitive advantage, with SUGO ranking 6th in social network app revenue in the Middle East and TopTop ranking 9th in Google Play game app revenue in the region [1] Innovative Business Growth - The innovative business segment is experiencing robust growth across multiple areas, including: 1. Premium games, with flagship game "Alice's Dream" entering a long-term operational phase since Q4 2024 [1] 2. Steady growth in social e-commerce, with Huoer Health consolidating its leading position in the health service sector [1] 3. Revenue contributions from the actively invested short drama business [1] 4. Launch of the AI creative content community Aippy, marking a forward-looking move in the "AI + social entertainment" field, with its iOS version now live [1] Future Outlook - The company is expected to maintain its multi-faceted growth strategy in premium games, social e-commerce, short dramas, and AI-native apps, which are anticipated to support long-term development [1]

Group 1 - The core viewpoint of the report is that ZhiZi City Technology (09911) has a target price of HKD 16.2 based on the sum-of-the-parts valuation method, corresponding to a price-to-earnings ratio of 17 times for the fiscal year 2025/26 and 14 times for the following year [1] - Future catalysts for growth include exceeding user growth expectations, new product launches, and the potential inclusion in the Hong Kong Stock Connect by March 2026 [1] Group 2 - In the social networking segment, both SUGO and TopTop are expected to maintain triple-digit year-on-year growth in revenue and profit in the first half of 2025 [1] - In the innovative business sector, the casual game "Alice's Dream" has turned profitable, with rapid revenue growth, while the social e-commerce business has recorded triple-digit profit growth [1] Group 3 - The firm projects revenues of RMB 6.8 billion and RMB 8.4 billion for the years 2025 and 2026, representing year-on-year growth of 34% and 24% respectively [1] - Adjusted net profits are expected to be RMB 1.2 billion and RMB 1.5 billion for the same years, reflecting year-on-year growth of 101% and 24% respectively [1] Group 4 - The firm anticipates that SUGO, TopTop, and other new products will maintain strong momentum, while other existing products will achieve stable single-digit growth [1]

Core Viewpoint - The report from China Merchants Securities International sets a target price of HKD 16.2 for ZhiZi City Technology (09911), based on the sum-of-the-parts (SOTP) valuation method, corresponding to a price-to-earnings ratio of 17 times for the fiscal year 2025/26 and 14 times for the following year [1] Financial Projections - Revenue for 2025 and 2026 is projected to be RMB 6.8 billion and RMB 8.4 billion, representing year-on-year growth of 34% and 24% respectively [1] - Adjusted net profit is expected to reach RMB 1.2 billion and RMB 1.5 billion for the same years, indicating year-on-year growth of 101% and 24% respectively [1] Business Segments - The social networking business, including SUGO and TopTop, is anticipated to maintain triple-digit year-on-year growth in both revenue and profit in the first half of 2025 [1] - The innovative business segment has seen the casual game "Alice's Dream" turn profitable, with rapid revenue growth, while the social e-commerce business recorded triple-digit profit growth [1] Future Catalysts - Potential catalysts for growth include exceeding user growth expectations, new product launches, and the possibility of being included in the Hong Kong Stock Connect by March 2026 [1]