Core Viewpoint - Huatai Securities published a report indicating that Xindong Company expects to achieve revenue of no less than 3.05 billion yuan in the first half of 2025, representing an annual increase of approximately 37%, and a net profit of no less than 790 million yuan, reflecting an annual increase of about 215% [1] Group 1: Revenue and Profit Expectations - Xindong Company anticipates revenue of at least 3.05 billion yuan for the first half of 2025, with a year-on-year growth of around 37% [1] - The expected net profit is no less than 790 million yuan, which indicates a year-on-year increase of approximately 215% [1] Group 2: Performance Drivers - The strong performance is attributed to successful game titles such as "Ragnarok M: Beginners," "Torchlight: Infinite," and "Xindong Town," which have shown good revenue generation [1] - The overall gross margin of the gaming business has improved year-on-year [1] - Revenue and profit growth for the TapTap platform is driven by improved advertising algorithms and increased user engagement [1] - The company has optimized its expense ratio [1] Group 3: Future Outlook - Huatai Securities is optimistic about the company's self-developed games entering a realization phase, validating the potential for market expansion [1] - The commercialization capability of the TapTap platform has strengthened, suggesting long-term growth opportunities [1] - The target price for Xindong Company has been raised from 42.89 HKD to 81.69 HKD, maintaining a "buy" rating [1]

Core Viewpoint - The company is expected to achieve significant revenue and profit growth in the first half of 2025, driven by strong performance in its gaming segment and improvements in its advertising platform [1] Group 1: Financial Performance - The company anticipates revenue of no less than 3.05 billion yuan for the first half of 2025, representing an approximate year-on-year increase of 37% [1] - Net profit is projected to be no less than 790 million yuan, reflecting a year-on-year increase of about 215% [1] Group 2: Business Drivers - The strong growth in revenue is attributed to successful game titles such as "Ragnarok M: Beginning," "Torchlight: Infinite," and "Heart Town," along with an overall improvement in the gaming business's gross margin [1] - Enhancements in advertising algorithms and increased user engagement have led to sustained growth in revenue and profit for the TapTap platform [1] - The company has optimized its expense ratio, contributing to improved financial performance [1] Group 3: Future Outlook - The company is viewed positively regarding its self-developed games entering a realization phase, with validated potential for market expansion [1] - The commercialization capability of the TapTap platform is expected to strengthen, opening up long-term growth opportunities [1] - The target price for the company's stock has been raised from 42.89 HKD to 81.69 HKD, maintaining a "buy" rating [1]

Core Viewpoint - Citigroup's research report indicates that Xindong Company’s earnings surprise has positively impacted the market, with projected revenue and net profit for the first half of the year expected to be at least 30.5 billion and 7.9 billion respectively [1] Group 1 - The company anticipates an increase in business performance in the second half of the year, driven by the potential launch of "Isser: Reboot Day" on September 25 in China, Japan, and South Korea, as well as the overseas debut of "Xindong Town" [1] - Citigroup has raised its revenue forecasts for Xindong Company for the years 2025 to 2027 by 13.9%, 8.3%, and 7.5% respectively [1] - The net profit forecasts have also been increased by 79%, 42%, and 22% for the same period [1] - The target price for the company's stock has been adjusted from 52 HKD to 73 HKD [1]

Core Viewpoint - Xindong Company (02400.HK) anticipates significant revenue and profit growth for the first half of 2025, driven by successful game operations and the performance of the TapTap platform [1][3][22]. Financial Performance - Expected revenue for H1 2025 is at least RMB 30.5 billion, a 37% increase from RMB 22.2 billion in the same period last year [1]. - Projected net profit is at least RMB 7.9 billion, representing a 215% year-on-year growth [1]. Game Performance - Key contributors to revenue growth include self-developed games such as "Ragnarok M: Beginner's Server," "Xindong Town," and "Torchlight: Infinite" [3][10]. - "Ragnarok M: Beginner's Server" simplifies the original game's complex systems, appealing to casual players [3]. - "Xindong Town" is a 3D social simulation game that emphasizes leisurely gameplay and has maintained a stable position in the iOS sales rankings [5][6]. - "Torchlight: Infinite," launched on May 10, 2023, has shown strong performance, reaching the top of the iOS free charts and peaking at 11th in sales [8][10]. New Game Releases - The new RPG "Ether: Reboot Day" has topped the iOS free charts in several Southeast Asian countries and is set for a domestic launch on September 25, 2023 [11][14]. - "Xindong Town" is expected to enter international markets in Q4 2025, while "Ragnarok RO: Guardian of Eternal Love 2" is planned for 2026 [14]. TapTap Platform Growth - The TapTap platform has seen continuous revenue and profit growth, attributed to improved advertising algorithms and user engagement, despite stable monthly active users [16]. Strategic Investments - Xindong plans to acquire a 5.3% stake in game company MiAO for $14 million, valuing MiAO at approximately $264 million [17][19]. - MiAO focuses on developing games that integrate social elements, aiming to enhance player connections [19][20]. Company Outlook - Xindong has successfully turned around its financial performance, achieving profitability and stable cash flow, positioning itself for future growth [22][23].

Core Viewpoint - The gaming sector experienced a significant rally, particularly driven by the strong performance of Xindong Company, which saw its stock rise by 24.76% after a peak increase of nearly 40% during the trading session on August 5, 2023 [1] Company Performance - Xindong Company announced a positive earnings forecast for the first half of 2025, attributing the expected growth to the strong performance of its self-developed games, including "Ragnarok M: Initial Server," "Xindong Town," and "Torchlight: Infinite," which exceeded revenue expectations and improved gross margins [1] - Other gaming stocks also saw gains, with IGG rising by 9.79% and the overall gaming ETF increasing by 1.66% on the same day [1] Market Dynamics - The collective strength of gaming stocks is supported by multiple favorable factors, including improved performance in the gaming sector and reasonable valuations [1] - The recent ChinaJoy exhibition has acted as a catalyst for the gaming sector, suggesting that it may continue to attract market interest and present good investment opportunities [1]

Summary of Xindong Company Conference Call Company Overview - **Company**: Xindong Company - **Industry**: Gaming and Information Services Key Points and Arguments 1. **Revenue Performance**: Xindong Company's gaming business revenue exceeded expectations, driven by strong performance in overseas markets for "Ragnarok" and significant contributions from "Torchlight" and "Xindong Town" [2][4] 2. **Profit Improvement**: The company saw a notable improvement in profit margins, with the gaming business gross margin increasing due to a higher proportion of overseas business, which has a better margin [2][4] 3. **Future Growth Potential**: Xindong Company has high growth certainty, with upcoming launches of "Iser" in multiple regions and the overseas version of "Xindong Town" expected by the end of 2025, which could significantly contribute to revenue [2][5] 4. **TapTap Platform**: The TapTap platform benefits from algorithmic recommendations and AI capabilities, enhancing ad targeting and improving ROI for advertisers, suggesting it should be valued as a vertical gaming community or tech platform [2][6] 5. **Revenue Forecast Adjustments**: The company raised its gaming business revenue forecast for 2025 by 32.4%, with similar adjustments for 2026 and 2027 nearing 35%, while also increasing overall gross margin by 4 percentage points [2][7] 6. **Profit Structure Changes**: The profit structure is shifting, with TapTap's profit growth potentially surpassing that of the gaming business, indicating a need for a distributed valuation approach [2][12][13] 7. **Market Valuation**: Using a distributed valuation method, the target market value is approximately 37 billion RMB, corresponding to a target price of 81 HKD, indicating further upside potential from current stock prices [3][14] 8. **Product Line Clarity**: The product line for the next two years is clear, with "Iser" contributing in Q4 2025 and "Xindong Town" expected to generate significant revenue in 2026 [10][26] 9. **Success Rate of Products**: The high success rate of Xindong's products is attributed to systematic resource investment and management optimization, leading to successful launches like "Xindong Town" and "Iser" [11] 10. **TapTap's Unique Business Model**: TapTap operates as both a game community and distribution channel, with a zero-revenue-sharing model that attracts many mid-tier companies, thus reducing their costs [19] 11. **Advertising Revenue Growth**: TapTap's advertising revenue is closely linked to its monthly active users (MAU), with a 33% increase in ad revenue despite a decline in MAU in 2023 [20] 12. **Profitability of TapTap**: In 2024, TapTap generated 1.5 billion RMB in revenue with a net profit exceeding 400 million RMB, and the net profit margin is expected to rise to around 40% in 2025 [25] 13. **Overall Performance Outlook**: The overall performance outlook for Xindong Company remains optimistic, with adjusted earnings forecasts reflecting strong growth potential driven by successful game launches and the profitability of the TapTap platform [27] Other Important Insights - **Market Discrepancies**: There are significant discrepancies in market valuation, with traditional views comparing Xindong to larger gaming companies like Tencent and NetEase, which may not accurately reflect its current growth trajectory [8][9] - **Focus on Key Projects**: Key projects to watch include "Ragnarok" and "Torchlight," with "Ragnarok" performing particularly well in Southeast Asia [15] - **User Engagement Strategies**: "Xindong Town" has maintained user engagement through frequent events, contributing to its strong performance in 2025 [16][17] - **Valuation Perspectives**: Different viewpoints exist regarding the valuation of "Xindong Town," with suggestions to evaluate it separately as a platform due to its complex profit structure [18]

Summary of Key Points from the Conference Call Industry Overview - The gaming sector's valuation remains relatively low compared to the broader consumer entertainment and overseas gaming companies, with sustainable growth expected until 2026 [1][3] - The gaming industry is experiencing a solid fundamental performance, with several companies projected to perform well in Q3 2025 [1][6] Company Highlights Xindong Company - Expected H1 2025 revenue of at least 3.05 billion yuan, a year-on-year increase of 37%, and net profit of at least 790 million yuan, a growth of over 215% [1][10] - The game "Xindong Town" significantly improved its iOS sales ranking due to collaboration with "My Little Pony" [10][11] - The game "Iser" generated over 100 million yuan in its first month in overseas English-speaking regions [1][11] Giant Network - The game "Supernatural Action Group" saw a 168% month-on-month increase in domestic iOS revenue in July 2025, benefiting from summer user engagement and commercialization iterations [1][13] - The anniversary event for "Ball Ball Battle" helped it regain a higher sales ranking [1][14] - New game "Ming Jiang Sha" received a license and is expected to contribute to revenue in the second half of 2025 [1][15] Gibit - The new product "Sword Legend" exceeded expectations in both domestic and overseas markets, with significant revenue from collaborations with Japanese light novel IPs [1][16][17] ST Huatuo - The game "Wild Survival" maintained stable global revenue, while "King Short" saw a 27% increase in overseas revenue [1][18] - Expected Q2 2025 revenue median of approximately 8.9 billion yuan, a year-on-year increase of 77% [2][18] Perfect World - The game "P5X: Persona 6" performed well in overseas markets, with July revenue exceeding 20 million USD [1][19] - The company plans to launch a key project "Yihua" in 2026 [1][20] Market Trends and Innovations - The gaming industry is witnessing innovation in themes and gameplay, with a notable trend of multi-platform releases and AAA games [1][7] - AI applications in gaming are expanding, with over 7,800 AI products on the Steam platform, representing 20% of games released in 2025 [1][9] Future Outlook - The gaming sector is expected to maintain strong performance in the second half of 2025, with new product launches potentially impacting market dynamics [1][23] - The ChinaJoy 2025 event saw increased popularity and introduced new IP derivative product displays, indicating a growing trend in the market [1][24][25] Recommendations - Companies to watch include Xindong Company, ST Huatuo, Gibit, and Giant Network, all of which have shown stable and high-frequency performance data [1][34]

Core Viewpoint - The China Securities Index for Hong Kong Stock Connect Cultural and Entertainment has shown significant growth, with a 9.61% increase over the past month, 45.35% over the past three months, and 42.81% year-to-date [1]. Group 1: Index Performance - The China Securities Index for Hong Kong Stock Connect Cultural and Entertainment Index is currently at 2066.25 points [1]. - The index is based on a sample of securities classified according to the China Securities Industry Classification Standard, reflecting the overall performance of different industry securities within the Hong Kong Stock Connect [1]. Group 2: Sector Composition - The index is fully composed of securities listed on the Hong Kong Stock Exchange, with a 100% allocation [1]. - Within the index, the gaming sector represents 64.10%, the film and animation sector accounts for 17.98%, and the publishing sector makes up 17.92% [1]. Group 3: Sample Adjustment - The index samples are adjusted biannually, specifically on the next trading day following the second Friday of June and December [2]. - Weight factors are generally fixed until the next scheduled adjustment, with temporary adjustments made in response to changes in the index sample due to special events [2].

Core Viewpoint - The report from CICC indicates that Xindong Company forecasts a year-on-year revenue growth of over 37% and a net profit growth of over 215% for the first half of this year, outperforming both the bank's and market expectations [1] Group 1: Financial Performance - The company's revenue and net profit margins from "Ragnarok: Origin" exceeded expectations [1] - TapTap's revenue and profit margins also performed better than anticipated [1] Group 2: Future Outlook - The company has solid gaming profit margins, with upcoming releases to watch including "Yise" on September 25, "Little Town" overseas, and the core product "RO2" set for its first test in 2026 [1] - CICC has raised its net profit forecasts for Xindong by 66% and 81% for this year and next, respectively, to 1.65 billion and 1.95 billion yuan [1] Group 3: Valuation - The current stock price corresponds to a projected price-to-earnings ratio of 15 times for this year and 13 times for next year [1] - The target price has been increased by 49% to 82.5 HKD, maintaining an "outperforming the industry" rating [1]

受业绩增长利好消息的影响，在业绩预喜公布后的8月5日，心动公司股价开盘高开8.55%，随后迅速拉 升，盘中涨幅超过24%，市值也一度攀升至350亿港元。而自2024年初的低点以来，心动公司区间涨幅 已超过800%。 8月4日，港股心动公司公布了其上半年业绩盈利预告。预告显示，公司预计收入不少于人民币30.5亿 元，同比增长约37%；预期净利润不少于人民币7.9亿元，同比增幅高达约215%。 对于业绩增长，心动公司做出的解释是：（1）自研游戏《仙境传说M：初心服》、《心动小镇》、 《火炬之光：无限》表现亮眼，拉动收入增长并改善毛利率。（2）TapTap虽平均月活同比相对稳定， 但广告算法改进、用户参与度提升拉动收入、利润持续增长。 此外，TapTap平台的收入表现同样可圈可点。2024年，该平台实现营业收入15.78亿元，同比增长 21.6%。而TapTap平台的收入成本仅为2.48亿元，占分部收入的百分比更是低至15.7%。 从过往财务数据来看，2024年心动公司实现营业收入50.12亿元，同比增长47.89%；实现归母净利润 8.90亿元，不仅同比扭亏为盈，还实现了大幅盈利。 展望未来，心动公司后续两款游戏 ...