Newborn Town H1 revenue rises on social networking business strength

Newborn Town

25/08/2026 13:27

Overview
China social networking app developer's H1 revenue rose 37% yr/yr to $607 mln
Net income attributable to shareholders grew 45.8% yr/yr
Company cites robust growth in core social networking business and improved profitability

Outlook
Company did not provide specific financial guidance for future quarters or the full year

Result Drivers
SOCIAL NETWORKING BUSINESS - Co said revenue growth was driven by strong performance in core social networking apps, with SUGO revenue up over 60% and TopTop up about 30% yr/yr
AI INTEGRATION - Co said deep integration of AI improved operational efficiency and user experience across business chain
INNOVATIVE BUSINESS - Co said profitability of short drama content improved by 64% and new games commercialization showed growth

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue from Contracts with Customers
 
$606.90 mln
 
H1 Net Income Attributable
 
$99.30 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 10 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Newborn Town Inc is HK$14.00, about 78.1% above its August 25 closing price of HK$7.86
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)