Cathay Pacific Haitong Securities: Target price of HK$6.5 for initial “increase in holdings” rating for Fubo Group (03738)
The Zhitong Finance App learned that Cathay Pacific Haitong Securities released a research report stating that the bank expects Fubo Group (03738) to have EPS of HK$0.13, HK$0.17 and HK$0.20 respectively in 2026-2028. Referring to comparable companies, the bank gave the company a dynamic PE valuation of 50 times in 2026, with a corresponding target price of HK$6.5, for the first time.
Cathay Pacific Haitong Securities's main views are as follows:
The world's leading digital content authorization and transaction service provider, the dual engine of “subscription protection+value-added monetization” drives business development
Fubo Group is the world's leading digital content asset protection and trading platform and service provider. The company was founded in Silicon Valley in the US in 2005 and completed its listing on the Hong Kong Stock Exchange in 2018. The company's subscription service is based on self-developed digital fingerprinting, watermarking and multi-modal recognition technology. It uses two models of regular subscription and pay-as-you-go API calls to provide copyright monitoring, piracy recognition, copyright management services to global content parties and platforms to support infringement identification, platform content review and ecological governance. In 2026, the business expanded to the fields of short dramas, music, games, sports events, etc., with revenue of HK$718 million in the first half of 2026, up 17.7% year on year, accounting for 39.8% of total revenue. The value-added business relies on Rights ID and Channel ID products launched in 2019 to provide services such as rights division, channel operation, and content distribution for overseas social and video platforms. It can recognize YouTube and other platforms to create UGC content and complete advertising revenue division. In the first half of 2026, revenue from value-added and other services was HK$1,087 billion, up 28.5% year-on-year, accounting for 60.2% of total revenue, and is the core growth engine.
In the AI era, we have built a complete closed loop ecosystem from content creation to authorization and monetization
In addition to providing content services to platforms and content parties, the company launched two major platforms, Vobile Max and Dream Maker, based on 20 years of accumulated authorization, monitoring and billing capabilities, to build a complete closed-loop ecosystem from content creation to authorization and monetization in the AI era. On September 3, '26, the company revealed that its subsidiary had reached a strategic cooperation with UNN Brunei, and obtained 25 megawatts of data center capacity to deploy artificial intelligence computing power, use liquid cooling and high power density technology, and establish and operate an “AI factory” driven by an advanced artificial intelligence computing system based on NVIDIA's computing core. The bank believes that the company's business extends from digital copyright software services to upstream computing power, which is expected to support the expansion of the Dream Maker platform, strengthen AI content creation, authorization and monetization capabilities throughout the chain, and serve the film, television and creator community.
Risk Alerts
AI business expansion falls short of anticipated risks, industry policy and copyright compliance risks, and competition risks in the copyright content market.