The Zhitong Finance App learned that Guosheng Securities released a research report saying that it is optimistic that Fubo Group (03738) will continue to benefit from the expansion of AI content supply and that the company's AI content business will open up new growth space. The bank expects the company to achieve revenue of HK$37.1/49.1/6.50 billion, YOY +29%/32%/33% in 2026-2028; achieve net profit attributable to mother of HK$3.4/51/710 million, YOY +68%/52%/39%, respectively; corresponding PE is 22X/14X/10X, respectively, maintaining the company's “buy” rating.
Incident: On September 3, the company announced that its subsidiary had entered into a strategic partnership and commercial agreement with Unified National NetworkSSDN Bhd to establish a strategic partnership and obtain 25MW of data center capacity equipped to deploy artificial intelligence computing power, using liquid cooling and high power density technology, with an additional 25MW expansion option.
Guosheng Securities's main views are as follows:
Brunei AI factory layout obtains 50MW computing power to support DreamMaker business expansion
On September 3, 2026, the company's subsidiary entered into a strategic partnership and commercial agreement with UNN, the national telecom network operator in Brunei to establish and operate an AI factory based on Nvidia's computing core, and obtained 50MW of computing power (of which 25MW is used for subsequent expansion arrangements) to support the expansion of the MakDreamer platform and related services. According to the Chinese Embassy in Brunei, the UNN data center is scheduled to be put into operation in 2028. The bank believes that this cooperation provides computing power deployment conditions for DreamMaker to expand its service scale, and is expected to enhance the company's ability to meet the AI content generation needs of film and television studios, independent producers, and content creators. On this basis, the company is expected to further provide copyright protection and monetization services around the same customer, and strengthen collaboration between content production and existing copyright businesses.
26H1's revenue grew steadily, mainly due to continued growth in the US business and expansion of mainland China business
26H1 achieved revenue of HK$1.81 billion, up about 24% year over year. Revenue growth was mainly due to continued growth in the US business and business expansion in mainland China driven by strategic and commercial partnerships. By region, 1) The United States and other regions: achieved revenue of HK$930 million, an increase of 27% year on year. The company's business integration with PEX progressed smoothly, and the music business quickly formed a revenue contribution and became an important driver for expanding new customers; 2) Mainland China: achieved revenue of HK$880 million, an increase of 21% year over year. The company further deepened cooperation with leading short video, UGC, long video, music and short drama platforms, and promoted digital content overseas.
Subscriptions and value-added services both grew
By business, 1) Subscription services: achieved revenue of HK$720 million, an increase of about 17.7% over the previous year. The increase was mainly due to large platform customers. The increase in the supply of platform content, the increase in the frequency of product launches, and the increase in AI content generation and re-creation of content led to a rise in demand for API calls; 2) Value-added and other services: achieved revenue of HK$1.09 billion, an increase of 29% over the previous year. The increase was mainly due to increased AI content supply, element-level secondary creation development, deepening cooperation with leading customers, and DreamMaker Generate AI-related revenue for the first time.
The supply of AI content is expanding, and demand for copyright identification and authorization is expected to grow at an accelerated pace
The video generation model achieved capacity improvement in the first half of 2026. In the past, content production required large teams and a long cycle to complete, but now small teams or even individual creators can directly generate it through the model, and the supply of content has increased dramatically. With the rapid growth of AI-generated and secondary content, copyright recognition requirements have extended from traditional copy-level comparison to element-level recognition such as character images, scenes, logos, sounds, and music clips. Native AI content (such as AI skits) began to be incorporated into the Group's monetized asset management on a large scale at 26H1, and the process of confirming and commercializing related content continued to accelerate. The bank believes that large-scale production of new forms of content, such as AI skits, is expected to drive an increase in demand for services such as content recognition, copyright management, authorized division of accounts, and revenue settlement, and accelerate commercialization of related businesses.
DreamMaker and Vobile Max entered early commercialization, and AI services began to contribute revenue
AI-related revenue driven by DreamMaker and Vobile Max was first generated on 26H1, and the DreamMaker platform's computing power service revenue reached a scale of 10 million dollars from zero. Vobile Max aggregates the company's core service capabilities in terms of authorization, protection, and monetization. DreamMaker is an entry point for creators in the AI era, and the content it produces continues to enter Vobile MAX to complete authorization and monetization. The company also completed the issuance of the first film and television copyright cash flow RWA project under the Hong Kong compliance framework to further explore the transaction and monetization of digital content assets. In terms of AI tools, Data Mining Copilot increased the production efficiency of each engineer by about 75% and reduced the cost of establishing and maintaining related monitoring algorithms by about 50%; the initial application of the Intelligent Target Engine in music content increased the average revenue for each claim to about 3 times that of the original method. The bank believes that with the further implementation of relevant platforms and tools, the company is expected to improve the efficiency of content identification and monitoring, reduce the cost of establishing and maintaining algorithms, and drive revenue growth from copyright claims through optimized monitoring target screening.
Risk warning: AI-related business commercialization falls short of expectations, changes in copyright regulation policies, intensification of industry competition, renewal of contracts or business expansion of major customers falls short of expectations, etc.