Newborn Town (SEHK:9911) Is Up 11.7% After Tencent Cloud AI Deal and Double-Digit Revenue Growth

• Newborn Town Inc. (09911.HK) recently reported estimated revenue growth of 37.6% to 39.9% year-on-year for the first three quarters of 2025, fueled by its AI-powered social networking and innovative business segments.
• Additionally, the company signed a strategic cooperation agreement with Tencent Cloud to jointly explore AI-driven social entertainment, strengthening its position for expansion in the MENA and Southeast Asia markets.
• Given this collaboration with Tencent Cloud, we'll look at how advanced AI integration could shape Newborn Town's investment narrative.

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What Is Newborn Town's Investment Narrative?

Being a shareholder in Newborn Town means believing in the company's vision of scaling its AI-powered social entertainment platforms globally, particularly across MENA and Southeast Asia, where user adoption and digital engagement are accelerating. The recent partnership with Tencent Cloud could materially shift sentiment and short-term catalysts, giving Newborn Town an edge in integrating advanced AI features and unlocking new revenue streams, a point not captured in earlier analysis or estimates. If this cooperation succeeds, the company may see faster revenue growth and strengthened technological barriers, potentially reducing competitive threats in core markets. However, new risks may come into focus, including ever-present execution risk in international expansion and the challenge of maintaining margins as AI-related costs rise. Investors will want to watch closely how efficiently the company leverages this high-profile partnership beyond the headline. On the other hand, board independence remains below what some consider optimal and could raise governance concerns.

Newborn Town's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

Within the Simply Wall St Community, three individual fair value estimates for Newborn Town range widely from HK$8.29 to HK$39.69. These contrasting views reflect how the market can react differently to catalysts like the recent Tencent Cloud partnership, and highlight the ongoing relevance of governance risks for future performance.

Explore 3 other fair value estimates on Newborn Town - why the stock might be worth over 3x more than the current price!

Build Your Own Newborn Town Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Newborn Town research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Newborn Town research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Newborn Town's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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