In "The Big Banks," Citigroup lowers the target price for NEWBORNTOWN to 16 yuan and maintains a "Outperform" rating

AASTOCKS
2026.01.27 02:18

CITIC published a report stating that NEWBORNTOWN (09911.HK) released solid operational and revenue data for the fourth quarter of 2025 after the market closed last Wednesday (21st), but the stock price still retreated by 16%. The firm believes this is mainly due to the management's earnings outlook for 2026 being below market expectations.

The firm believes that the company's commitment to invest RMB 200 million to 300 million in short dramas and AI technology, while putting pressure on short-term profit margins, is reasonable given the vast development opportunities in the global entertainment industry, and it can enrich the product portfolio for sustainable long-term development.

Based on the downward revision of earnings forecasts, the firm has lowered the target price for NEWBORNTOWN from HKD 17.5 to HKD 16, maintaining a "outperform the market" rating

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