Group 1 - The top-performing stock in the Hong Kong Stock Connect is Huilyang Technology, with a gain of 14.27% [1] - Following Huilyang Technology, the stocks of Zai Ding Pharmaceutical and Kedi-B increased by 8.77% and 7.86% respectively [1] - Other notable gainers include Alibaba Health and Kuaishou-W, which rose by 7.73% and 6.42% respectively [1] Group 2 - Additional companies with significant gains include Gushengtang and MGM China, with increases of 6.52% and 6.28% respectively [1] - Bilibili-W also saw a rise of 6.14% [1] - A number of companies, including AIA Group and Weimeng Group, experienced gains of 5.42% and 5.13% respectively [1] Group 3 - Companies such as Yihai International, New Macau Development, and Laopu Gold saw gains exceeding 4% [1] - Other firms, including China Biopharmaceutical, Aubo Holdings, and Youran Livestock, had increases over 3% [1]

不过，最新消息显示，美国候任总统特朗普正在考虑在上任后发布一项行政命令，拟暂停执行TikTok销 售或禁止法案60至90天，并且希望能在这场"TikTok保卫战"中取得胜利。 据相关报道，截至1月13日，小红书成功登顶苹果应用商店下载榜，而TikTok旗下的照片共享应用 Lemon8以及OpenAI的ChatGPT则紧随其后。 小红书此次爆火与海外版抖音"TikTok"在美国面临的禁令危机密切相关。当下，众多TikTok创作者正急 于寻觅能够继续发布视频的替代方案，同时密切关注着TikTok禁令是否会如期生效。此前，美国政府以 所谓的"国家安全"为由，要求TikTok母公司字节跳动在1月19日之前剥离TikTok，否则将对其实施禁 令。 财联社1月16日讯(编辑 胡家荣) 受益小红书这一热点持续火热，港股SaaS概念股持续走强。 截至发稿，汇量科技(01860.HK)、兑吧(01753.HK)、有赞(08083.HK)分别上涨3.68%、2.54%、1.83%。 小红书热点提振港股SaaS概念股 值得注意的是，小红书爆火所带来的热度在一定程度上提振港股SaaS概念股的表现。比如今日盘中一度 涨超6%的汇量科技 ...

Investment Rating - The report maintains a "Buy" rating for Mobvista (1860 HK) with a 6-month target price of HKD 12 8 [1][4] Core Views - Mobvista's Q3 2024 revenue reached $416 million, a 54 6% YoY increase, with adjusted net profit of $11 million, up 162 4% YoY [1] - The company's programmatic advertising platform, Mintegral, contributed $402 million in revenue, a 57 6% YoY increase, driven by its smart bidding capabilities and expansion into new verticals [2] - Mintegral's game category revenue grew 46 5% YoY to $295 million, accounting for 73 2% of its total revenue, while non-game categories surged 98 5% YoY to $108 million, with e-commerce being a key driver [2] - The company's gross margin improved by 0 5pp YoY to 21 1%, supported by a 0 9pp increase in ad tech gross margin to 20 6% [2] - Mobvista has achieved consecutive quarters of profitability since Q4 2022, demonstrating strong scale effects [2] Financial and Valuation Summary - Revenue is expected to grow from $894 4 million in 2024E to $2,084 9 million in 2026E, with a CAGR of 23 9% [3] - Adjusted net profit is projected to increase from $9 7 million in 2024E to $82 9 million in 2026E, with a CAGR of 71 4% [3] - EPS is forecasted to rise from $0 02 in 2024E to $0 05 in 2026E [3] - The company's P/E ratio is expected to decline from 49 3x in 2024E to 22 2x in 2026E, reflecting strong earnings growth [3] Business Performance and Strategy - Mintegral's smart bidding system has gained market validation, with ROAS (Return on Ad Spend) becoming a mainstream choice for developers [2] - The platform has expanded into mid-to-hardcore games and non-game verticals such as e-commerce and social, driving diversification [2] - Non-programmatic ad revenue declined slightly by 0 5% YoY to $9 94 million, while marketing tech revenue grew 1% YoY to $4 million, supported by overseas expansion and cost optimization [2] Financial Metrics - Gross margin for ad tech improved to 20 6%, while marketing tech gross margin declined by 13 5pp to 68 9% [2] - Sales expenses increased by 32 7% YoY due to rising bidding costs, and R&D expenses surged 59 7% YoY due to investments in the smart bidding system [2] - The company's ROE is expected to rise from 7 6% in 2024E to 13 0% in 2026E, reflecting improved profitability [10]

Investment Rating - The report does not provide a specific investment rating for Mobvista (1860 HK) [2] Core Business - Mobvista is a global leader in mobile advertising and marketing technology, primarily serving mobile app developers and helping Chinese developers expand overseas [2] - The company focuses on programmatic advertising and data-driven marketing, with its core business relying on the Mintegral platform [2] - Key business segments include: (i) programmatic advertising solutions, (ii) data analytics and operations services, (iii) SaaS tool matrix development and sales, and (iv) multi-scenario traffic monetization services [2] - Advertising technology accounts for 98 6% of revenue, with programmatic advertising being the major contributor, while marketing technology currently represents 1 4% of revenue but is in a rapid expansion phase [2] Market Outlook - The global mobile advertising and marketing technology market is expected to exceed $500 billion by 2025, with programmatic advertising growing at a 16 2% CAGR [2] - Mid-tail and long-tail traffic are becoming increasingly important due to privacy protection and antitrust policies, presenting significant growth opportunities [2] Competitive Landscape - The global ad tech platform market is dominated by Google AdMob and Meta Audience Network in the head traffic segment, while mid-tail and long-tail traffic are controlled by programmatic advertising platforms including AppLovin, Unity Ads, and Mintegral [2] - Mobvista has strengthened its competitiveness in ROI improvement for advertisers, global traffic coverage, and data analytics efficiency through continuous algorithm optimization and service enhancement [2] Future Prospects - The company plans to focus on advertising services for mid-core games, utility apps, and e-commerce sectors, which are experiencing rapid growth [2] - The mid-core game sector, in particular, is expected to reach a market potential of hundreds of billions of dollars by 2025 due to the popularity of hybrid monetization models [2] - Mintegral platform currently handles trillions of ad requests annually, with revenue and profit steadily increasing alongside global business expansion [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company has experienced rapid revenue and profit growth in Q3 2024, driven by technological innovation and customer acquisition, leading to a maintained "Buy" rating [2] - The revenue for the first three quarters of 2024 reached $1.055 billion, a year-on-year increase of 36.0%, with adjusted net profit of $19.164 million, up 37.4% year-on-year [2] - In Q3 2024, the company achieved revenue of $416 million, a year-on-year increase of 54.6% and a quarter-on-quarter increase of 23.6%, with adjusted net profit of $10.668 million, up 162.4% year-on-year [2] Revenue and Profitability Summary - The programmatic advertising platform Mintegral saw accelerated revenue growth, achieving $403 million in Q3 2024, a year-on-year increase of 57.6% and a quarter-on-quarter increase of 25.7% [3] - The gaming category generated $295 million in revenue in Q3 2024, a year-on-year increase of 46.5%, while non-gaming categories reached $108 million, up 98.5% year-on-year [3] - The gross margin for Q3 2024 was 21.1%, an increase of 0.5 percentage points year-on-year, and the net profit margin was 2.4%, up 1 percentage point year-on-year [3] Future Growth Drivers - The company is leveraging AI to enhance the Mintegral platform, with the D7 Target ROAS feature launched in October 2024 to improve marketing ROI for clients [4] - The ongoing iteration of ROAS technology is expected to drive long-term growth by accumulating rich marketing data [4] - The company has expanded its client base in non-gaming categories, indicating the effectiveness of its multi-vertical strategy [3][4] Financial Projections - The company forecasts net profits of $40 million, $72 million, and $88 million for 2024, 2025, and 2026 respectively, with corresponding EPS of $0.03, $0.05, and $0.06 [2][5] - The current price-to-earnings (P/E) ratios are projected at 25.2, 14.0, and 11.4 for 2024, 2025, and 2026 respectively [2][5]

Revenue Performance - Revenue for Q3 2024 reached $416.457 million, a year-on-year increase of 54.6% and a quarter-on-quarter increase of 23.6%[1] - Mintegral, the programmatic advertising platform, recorded revenue of $402.5 million in Q3 2024, a year-on-year increase of 57.6% and a quarter-on-quarter increase of 25.7%[4] - Mintegral platform revenue in Q3 2024 reached $402.5 million, a 57.6% YoY increase[9] - Revenue for the three months ended September 30, 2024, was $416.457 million, a 54.6% increase compared to $269.370 million in the same period in 2023[26] - Revenue for the nine months ended September 30, 2024, was $1.054744 billion, a 36.0% increase compared to $775.503 million in the same period in 2023[26] Profitability Metrics - Net income for Q3 2024 was $109.386 million, up 49.2% year-on-year and 29.6% quarter-on-quarter[1] - Gross profit for Q3 2024 stood at $87.845 million, a year-on-year increase of 58.3% and a quarter-on-quarter increase of 26.6%[1] - Net profit for Q3 2024 was $8.843 million, a significant year-on-year increase of 171.2% and a quarter-on-quarter increase of 4,732.2%[1] - Adjusted EBITDA for Q3 2024 was $34.269 million, a year-on-year increase of 45.3% and a quarter-on-quarter increase of 6.5%[1] - Gross profit rose 58.3% YoY to $87.8 million in Q3 2024, with advertising technology business gross margin improving to 20.6%[14][15] - Net profit in Q3 2024 was $8.8 million, a 171.2% YoY increase[20] - Adjusted EBITDA grew 45.3% YoY to $34.3 million in Q3 2024[20][21] - Gross profit for the three months ended September 30, 2024, was $87.845 million, representing a 58.3% increase from $55.502 million in the same period in 2023[26] - Operating profit for the three months ended September 30, 2024, was $12.125 million, a 132.2% increase compared to $5.221 million in the same period in 2023[26] - Adjusted EBITDA for the three months ended September 30, 2024, was $34.269 million, a 45.3% increase from $23.577 million in the same period in 2023[23] - Net profit for the three months ended September 30, 2024, was $8.843 million, a 171.2% increase compared to $3.261 million in the same period in 2023[26] - Adjusted net profit for the three months ended September 30, 2024, was $10.668 million, a 162.4% increase from $4.065 million in the same period in 2023[23] - Gross profit for the nine months ended September 30, 2024, was $219.046 million, representing a 38.2% increase from $158.462 million in the same period in 2023[26] - Operating profit for the nine months ended September 30, 2024, was $25.368 million, a 41.8% increase compared to $17.892 million in the same period in 2023[26] - Net profit for the nine months ended September 30, 2024, was $16.180 million, a 37.3% increase compared to $11.783 million in the same period in 2023[26] Mintegral Platform Performance - Mintegral's gaming category revenue reached $294.5 million in Q3 2024, up 46.5% year-on-year and 26.2% quarter-on-quarter[4] - Mintegral's non-gaming category revenue was $108.0 million in Q3 2024, a year-on-year increase of 98.5% and a quarter-on-quarter increase of 24.6%[4] - Gaming category accounted for 73.2% of Mintegral's total revenue in Q3 2024, generating $294.5 million, a 46.5% YoY growth[10][11] - Non-gaming category revenue grew 98.5% YoY to $108.0 million, representing 26.8% of Mintegral's total revenue in Q3 2024[10][11] Expenses and Costs - Cost of sales increased 53.7% YoY to $328.6 million in Q3 2024, primarily driven by advertising technology business costs[12][13] - Sales and marketing expenses increased 32.7% YoY to $16.7 million in Q3 2024, mainly due to higher bidding fees[16] - R&D expenses surged 59.7% YoY to $45.9 million in Q3 2024, driven by increased model training costs for the intelligent bidding system[17] Financial Position - Total assets decreased to $239.2 million as of September 30, 2024, compared to $334.988 million as of December 31, 2023[28] - Current assets decreased to $398.271 million as of September 30, 2024, from $400.204 million as of December 31, 2023[28] - Current liabilities increased to $484.952 million as of September 30, 2024, from $356.563 million as of December 31, 2023[28] - Net current liabilities stood at $86.681 million as of September 30, 2024, compared to net current assets of $43.641 million as of December 31, 2023[28] - Non-current assets increased to $325.881 million as of September 30, 2024, from $291.347 million as of December 31, 2023[28] - Non-current liabilities decreased to $15.076 million as of September 30, 2024, from $75.878 million as of December 31, 2023[29] - Equity attributable to shareholders decreased to $218.103 million as of September 30, 2024, from $250.092 million as of December 31, 2023[29] - Total equity decreased to $224.124 million as of September 30, 2024, from $259.11 million as of December 31, 2023[29] - Cash and cash equivalents decreased to $104.278 million as of September 30, 2024, from $146.348 million as of December 31, 2023[28] - Trade and other receivables increased to $226.176 million as of September 30, 2024, from $164.294 million as of December 31, 2023[28] Other Revenue Streams - Non-programmatic advertising revenue in Q3 2024 was $9.9 million, a year-on-year decrease of 0.5% and a quarter-on-quarter decrease of 18.7%[4] - Marketing technology revenue in Q3 2024 was $4.0 million, a year-on-year increase of 1.0% and a quarter-on-quarter decrease of 10.7%[4]

Financial Performance - Revenue for the six months ended June 30, 2024, reached $638.287 million, a 26.1% increase compared to $506.133 million in the same period of 2023[4]. - Net income for the same period was $166.536 million, reflecting a 22.1% growth from $136.365 million year-over-year[4]. - Gross profit increased by 27.4% to $131.201 million, up from $102.960 million in the previous year[4]. - Adjusted EBITDA for the six months was $62.881 million, a 21.4% increase from $51.802 million in 2023[4]. - The company achieved profitability for seven consecutive quarters since turning profitable in Q4 2022, driven by infrastructure upgrades and improved model training efficiency[42]. - The profit attributable to equity holders for H1 2024 was $9.3 million, a decrease from $10.2 million in the same period of 2023[88]. - The adjusted net profit for H1 2024 was $11.8 million, up 32.4% from $8.9 million in H1 2023[91]. - The company reported a total comprehensive income of $7,780 thousand for the period, compared to $8,303 thousand in the prior year[106]. Market Trends and Expansion - The global mobile application download volume reached 257 billion in 2023, with a 1% year-over-year growth, indicating a resilient mobile app market[9]. - Mobile advertising spending reached $362 billion in 2023, with an 8% year-over-year increase, and is projected to exceed $400 billion in 2024[9]. - The company is focusing on expanding its presence in emerging markets such as South Korea, Brazil, Mexico, and Turkey, where user spending has increased by 25% year-over-year[9]. - By 2025, overseas marketing for Chinese companies is expected to exceed $50 billion, indicating a strong trend in the mobile internet expansion abroad[10]. - The company is committed to becoming a Growth Hub for small and medium developers, addressing their globalization challenges through SaaS tools[44]. Advertising Technology and Services - The demand for advertising technology services is increasing as developers face challenges in user acquisition and monetization in a competitive mobile app ecosystem[5]. - Mintegral has established strong commercial relationships and industry recognition among Chinese mobile app developers, benefiting from the growing overseas marketing market[10]. - The advertising market in Europe and the US is showing stability and growth, with major platforms like Google and Meta performing well[6]. - The company covers the entire programmatic advertising industry chain, enhancing client relationships and improving algorithm capabilities through data integration[15]. - The platform's programmatic advertising model significantly improves ad efficiency and ROI for advertisers[20]. - The company has invested heavily in building an intelligent bidding system since the second half of 2021 to enhance its algorithm capabilities[12]. - The company launched the Target ROAS smart bidding feature in May 2023, which has contributed over 60% of Mintegral's total revenue in H1 2024[42]. Client Base and Revenue Sources - Mintegral's client base spans approximately 130 countries, with 72.2% of revenue coming from gaming clients[27]. - Over 97% of devices reached by Mintegral are from overseas markets, highlighting the platform's global reach[28]. - The Ad-tech segment accounts for over 90% of total net income, while Mar-tech is still in early product development stage[22]. - Game-related revenue on the Mintegral platform was $436.2 million, accounting for 72.2% of total Mintegral revenue, with a year-over-year increase of 16.4%[70]. - Non-game category revenue surged to $167.5 million, marking an 80.2% year-on-year growth from $92.9 million in the same period of 2023, driven by advancements in the smart bidding system[46]. Operational Efficiency and Cost Management - The company expects to continuously lower server costs as scale increases and optimize algorithm efficiency, enhancing future gross margins[26]. - The unit cost of server resources has been reduced to around 5% in H1 2024, down from 9% at the beginning of 2022, through optimization of the cloud-native platform[42]. - The overall accounts receivable turnover days for the group in H1 2024 was 44 days, down from 51 days in 2023 and 52 days in 2022[85]. - The accounts payable turnover days remained stable at 86 days in H1 2024, consistent with 2023 and improved from 90 days in 2022[86]. Research and Development - Research and development expenses rose by 49.4% to $62.8 million, reflecting increased costs associated with the development of smart bidding systems[79]. - The company has a top-tier R&D team with members from prestigious universities and experience in leading tech companies, enhancing its technical capabilities in data science and cloud computing[33]. - The company has embraced AI trends by integrating large model technology into its cloud-native platform, MaxCloud, enhancing DevOps processes and product delivery efficiency[52]. Financial Position and Liabilities - Total assets as of June 30, 2024, were $745.0 million, an increase from $691.6 million as of December 31, 2023[93]. - Total liabilities amounted to $505.8 million, up from $432.4 million as of December 31, 2023, resulting in a debt-to-asset ratio of 67.9%[93]. - The company reported a net cash flow from operating activities of $118.7 million in H1 2024, representing a significant increase of 147.4% year-over-year from $48.0 million in 2023[88]. - The company incurred a net cash outflow from investing activities of $71,281 thousand, compared to $37,833 thousand in the same period last year, indicating an increase in investment activities[114]. Shareholder Information and Corporate Governance - The company’s executive director, Duan Wei, holds a controlling interest of 64.65% in the company[180]. - The total number of issued shares is 1,590,857,164, with a major shareholder, Shunliu, holding 1,028,464,229 shares, representing 64.65% of the total issued shares[185]. - The employee restricted share unit plan was adopted on September 27, 2018, to incentivize employees and retain talent for future growth[187]. - The plan allows for participation from existing employees and consultants, excluding directors and senior management[188].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a revenue of USD 638 million in H1 2024, representing a year-on-year increase of 26.1%. The adjusted net profit was USD 11.84 million, up 32.4% year-on-year, and adjusted EBITDA was USD 62.88 million, reflecting a 21.4% increase year-on-year. The growth is primarily driven by the advertising technology business centered around Mintegral [4][5] - The company maintains its profit forecast for 2024-2026, expecting net profits of USD 40 million, USD 72 million, and USD 88 million for the respective years, with corresponding EPS of USD 0.03, USD 0.05, and USD 0.06. The current stock price corresponds to P/E ratios of 8.0, 4.4, and 3.6 for the years 2024, 2025, and 2026 respectively [4][6] Revenue and Profit Growth - In H1 2024, the advertising technology business generated USD 630 million in revenue, accounting for 98.6% of total revenue, with a gross margin of 19.7%. Programmatic advertising revenue from Mintegral was USD 604 million, up 29% year-on-year, while non-programmatic advertising revenue decreased by 16.4% [5][6] - The marketing technology business generated USD 8.7 million in revenue, with a gross margin of 78.9% [5] Strategic Developments - The company is focusing on platform scale growth and multi-vertical expansion as mid-term strategic goals. Non-gaming category revenue reached USD 167 million in H1 2024, up 80.2% year-on-year, indicating the effectiveness of the multi-vertical expansion strategy [6] - In July 2024, Mintegral launched a new Target-CPE feature for event-based ad optimization, enhancing algorithm capabilities and innovative ad strategies, which is expected to further drive revenue growth [6] Financial Projections - The company projects revenue growth from USD 1.054 billion in 2023 to USD 1.617 billion in 2026, with a compound annual growth rate (CAGR) of 20.1% [7] - Net profit is expected to grow from USD 22 million in 2023 to USD 88 million in 2026, with a significant increase in net profit margin from 2.1% to 5.5% over the same period [7]

Financial Performance - Revenue for the six months ended June 30, 2024, reached $638.287 million, a 26.1% increase compared to $506.133 million in the same period of 2023[2] - Net income for the same period was $166.536 million, reflecting a 22.1% growth from $136.365 million year-over-year[2] - Gross profit increased to $131.201 million, up 27.4% from $102.960 million in the previous year[2] - Adjusted EBITDA for the period was $62.881 million, representing a 21.4% increase from $51.802 million in 2023[2] - The company has achieved profitability for seven consecutive quarters since Q4 2022, with revenue continuing to rise quarter-over-quarter in 2023 and into the first half of 2024[41] - In 2023, Mintegral's revenue increased by 29.0% year-over-year, while non-programmatic advertising revenue decreased by 16.4%, yet the advertising technology business net income grew by 22.3%[42] - The company recorded a profit attributable to equity holders of $9.3 million, down from $10.2 million in the same period last year[89] - The net profit for the six months ended June 30, 2024, was $7.337 million, down from $8.522 million in 2023, indicating a decrease of about 14%[108] - The basic earnings per share for the period was $0.61, compared to $0.66 in the same period last year[108] Advertising Technology - The Ad-tech segment, centered around Mintegral, accounts for over 90% of the company's net revenue, while the Mar-tech segment is still in the early stages of product development[20] - The Ad-tech segment generated $629.6 million in revenue, accounting for 98.6% of total revenue, with a year-on-year growth of 26.2%[64] - Programmatic advertising revenue was $603.7 million, making up 95.9% of Ad-tech revenue, with a 29.0% increase compared to the previous year[67] - The company aims to integrate its Ad-tech and Mar-tech capabilities to create a comprehensive product matrix covering various stages of developer growth[19] - The company has invested heavily in building a smart bidding system since the second half of 2021 to enhance its algorithm capabilities[12] - The Target ROAS smart bidding feature launched in May 2023 has contributed over 60% of Mintegral's total revenue in the first half of 2024[42] - The Mintegral platform processes over 200 billion daily ad requests, serving more than 10,000 global top advertisers and 100,000 leading apps[18] Market Trends - The global mobile advertising expenditure reached $362 billion in 2023, with an expected growth to over $400 billion in 2024, indicating a compound annual growth rate (CAGR) of 16.2% from 2019 to 2024[9] - The trend of hybrid monetization is becoming mainstream among top mobile games, requiring higher demands on advertising algorithms[12] - The trend of Chinese companies expanding overseas is expected to see marketing expenditures surpassing $50 billion by 2025, indicating a robust growth trajectory[10] - The advertising market in Europe and the US is showing resilience, with major platforms like Google and Meta continuing to perform well, contributing to a stable upward trend in the overall advertising market[5] Customer Base and Global Presence - Mintegral's main customers are in the gaming sector, accounting for 72.2% of total revenue, while non-gaming sectors increased from 19.9% in H1 2023 to 27.8%[26] - Over 97% of devices reached by Mintegral are from overseas regions, indicating a strong international presence[27] - Mintegral operates in approximately 130 countries, showcasing its global customer distribution[25] - Currently, 40% of the company's clients are from China, while 97% of traffic originates from overseas markets, indicating a strong global presence[49] Research and Development - The company has a strong R&D team with expertise from top universities and experience from leading tech firms, enhancing its technological capabilities[32] - Capitalized R&D expenses combined with expensed R&D expenses totaled $96.7 million, a 21.2% increase compared to the same period last year[81] - The increase in expensed R&D was 49.4% year-on-year, reaching $62.8 million, mainly due to the development of an intelligent bidding system[81] Financial Position - The company's total assets as of June 30, 2024, amounted to $745.0 million, an increase from $691.6 million as of December 31, 2023[93] - The total liabilities were $505.8 million as of June 30, 2024, compared to $432.4 million as of December 31, 2023, resulting in a debt-to-asset ratio of 67.9%[93] - Cash and cash equivalents decreased to $84.0 million as of June 30, 2024, down from $146.3 million as of December 31, 2023[94] - The company reported a net current liability of $71,176,000, raising concerns about its ability to continue as a going concern[114] Strategic Goals - The company aims to expand its platform scale and diversify its offerings as part of its mid-term strategic goals[70] - Mintegral aims to become a Growth Hub for small and medium developers, focusing on addressing their globalization challenges and enhancing their market penetration[43] - The company is committed to a globalization strategy, actively expanding its market share in the Asia-Pacific, EMEA, and Americas regions[50] Legal and Regulatory Matters - The company reached a settlement agreement with a shareholder (Seller A) regarding the acquisition of an 18.56% stake in Beijing Hot Cloud Technology, agreeing to pay a total of $25,684,000, which includes $23,512,000 as settlement and $2,172,000 in related costs[139] - The company is currently involved in an ongoing dispute with another shareholder (Seller B) regarding a 15.30% stake in Beijing Hot Cloud Technology, with a court ruling requiring the company to pay approximately $32,249,000 plus additional penalties and fees[140] - The company has applied to the National Development and Reform Commission (NDRC) for a security review related to the acquisition of Beijing Hot Cloud Technology, which is currently under review[140]

Investment Rating - Buy rating maintained for the company [3][4] Core Views - Mintegral contributes to revenue growth, with six consecutive quarters of profitability, supporting the Buy rating [4][5] - The company achieved record-high revenue and profits in 2024Q1, with revenue of USD 301 million (YoY +23.3%, QoQ +8.2%) and adjusted net profit of USD 8.868 million (YoY +96.6%, QoQ +45.0%) [5] - Mintegral's revenue reached USD 284 million (YoY +25.4%, QoQ +10.3%), accounting for 94.1% of total revenue [5] - The company is expected to achieve net profits of USD 40/72/88 million for 2024-2026, with EPS of USD 0.03/0.05/0.06, and PE ratios of 16.8/9.3/7.6x [5] Financial Summary and Valuation Metrics - 2024Q1 revenue: USD 301 million (YoY +23.3%, QoQ +8.2%) [5] - 2024Q1 adjusted EBITDA: USD 30.697 million (YoY +17.7%, QoQ +2.7%) [5] - 2024Q1 gross margin: 20.5% (YoY +1.3 pct) [6] - 2024Q1 net margin: 2.35% (YoY +1.0 pct) [6] - 2024-2026 revenue forecast: USD 1.266/1.456/1.617 billion, with YoY growth of 20.1%/15.0%/11.1% [7] - 2024-2026 net profit forecast: USD 40/72/88 million, with YoY growth of 83.3%/80.7%/22.2% [7] Business Highlights - Mintegral's non-gaming revenue reached USD 80.8 million (YoY +83.2%, QoQ +8.8%), accounting for 28.5% of Mintegral's total revenue (YoY +9.0 pct) [5] - Gaming revenue remained the core, contributing USD 203 million (YoY +11.4%, QoQ +10.9%), accounting for 71.5% of Mintegral's total revenue [5] - E-commerce and mid-to-hardcore gaming clients are expected to drive Mintegral's growth [5] - The company increased R&D investment in ROAS, with R&D expenses reaching USD 29.52 million (YoY +57.8%) [6] Industry Insights - Mid-to-hardcore games accounted for 59% of the global mobile gaming market in 2023, indicating potential for further growth in this segment [5]