Key Takeaways:
Newborn Town Inc. (09911.HK) projected a first-quarter revenue increase of up to 39.6 percent, driven by sustained growth in its core social networking business and a surge in its innovative ventures.
“The continued YoY growth in overall revenue was mainly attributable to the combined contribution from its social networking business and innovative business,” the company said in a filing.
For the three months ending March 31, 2026, Newborn Town expects total revenue to be between RMB 2.03 billion and RMB 2.13 billion. Its core social networking business is forecast to generate RMB 1.785 billion to RMB 1.865 billion, up 31.3% to 37.2% year-over-year. The innovative business segment, which includes new initiatives like the recently launched NUSD Pay AI payment platform, is expected to see revenue jump 46.7% to 58.7% to between RMB 245 million and RMB 265 million.
The guidance suggests accelerating momentum for the company, which was recently included in the Stock Connect program, broadening its investor base. While the stock has seen volatile trading, it has gained about 17.7% over the past 30 days, with investors watching for early adoption metrics of its new AI payment services.
Newborn Town's push into AI-enabled payments with NUSD Pay represents a strategic effort to deepen monetization of its large user base from social networking. The company's ability to convert user engagement into financial transactions will be a key factor for future growth, with its price-to-earnings ratio of 12.5x sitting just above the industry average of 12.4x.
The strong revenue forecast provides a bullish signal for the company's growth trajectory ahead of the official first-quarter results. Investors will be closely watching the subsequent earnings report for details on user growth, the initial performance of NUSD Pay, and any updates to the full-year outlook.
This article is for informational purposes only and does not constitute investment advice.
