Summary of the Conference Call on Xindong Company Company and Industry - **Company**: Xindong Company (心动公司) - **Industry**: Gaming and Media Key Points and Arguments 1. **Core Recommendation Logic**: The conference focused on the core recommendation logic for Xindong Company, emphasizing the significant changes in the company's self-developed games and their performance in various markets [2][3][4]. 2. **Game Launches**: The self-developed game "Chufa Maifen" launched in late January in Hong Kong and Macau has shown strong performance, exceeding market expectations. The game was later launched in mainland China on May 16, achieving over 300 million RMB in revenue in its first month [3][11][13]. 3. **User Growth**: The newly launched game "Xindong Xiaozhen" has also performed well, reaching 3.9 million downloads shortly after its launch on July 17, with rankings in the iPhone free game charts climbing to first place [5][6][25]. 4. **Sustained Performance**: Both "Chufa Maifen" and "Xindong Xiaozhen" are expected to drive continuous revenue growth, with "Xindong Xiaozhen" being positioned as a long-lifecycle product due to its gameplay mechanics [6][7][30]. 5. **Market Strategy**: The company plans to expand "Chufa Maifen" into the Korean and Japanese markets, which are expected to provide significant revenue potential based on previous performance metrics from similar games [23][40]. 6. **User Engagement**: The games are designed to enhance user engagement through innovative gameplay and social features, which are crucial for retaining players over the long term [18][21][31]. 7. **Platform Growth**: The Tap Tap platform is benefiting from the launch of new games, with an expected increase in monthly active users (MAU) surpassing 5 million during the summer [34][37]. 8. **Advertising Revenue**: The growth in user base is anticipated to lead to increased advertising revenue for the Tap Tap platform, as more users engage with the games [39][40]. Other Important but Possibly Overlooked Content 1. **Marketing Strategies**: The return of Huang Xiwei, the original founder of Tap Tap, has positively impacted the company's marketing strategies, particularly for "Chufa Maifen" [22]. 2. **Social Media Impact**: The game's success has been amplified by social media discussions, with significant user-generated content contributing to its visibility and user acquisition [26][27]. 3. **Long-term Potential**: The long-term potential of "Xindong Xiaozhen" is highlighted, with expectations of stable revenue contributions through low-cost in-game purchases and subscriptions [31][32]. 4. **Competitive Landscape**: The competitive landscape is noted, with Xindong's games positioned against major titles like "Honor of Kings" and "Peacekeeper Elite," indicating a strong market presence [13][29]. This summary encapsulates the key insights from the conference call regarding Xindong Company's strategic direction, game performance, and market positioning.

Investment Rating - Buy (maintained) [2] Core Views - The self-developed life simulation mobile game "Heartbeat Town" officially launched on July 17, with pre-downloads ranking No 1 on the iOS free list and TapTap hot list, with over 300,000 pre-registrations and over 800,000 downloads on TapTap, with a score of 8 8 The game is expected to attract users through quality and word-of-mouth, retain users through rich content and strong social interaction, and monetize through low-priced skins and outfits, driving stable revenue growth [2] - The WeChat mini-game version of "Let's Go Muffin" launched on July 17, with the game maintaining a top 25 position on the iOS bestseller list and over 3 million downloads across all platforms The mini-game version is expected to cover more Android users and non-core players, further boosting overall game revenue [3] - TapTap is expected to benefit from increased advertising demand due to the launch of numerous new games in 2024, including Tencent's "DNF Mobile" and "StarCraft: Dawn", NetEase's "Naraka: Bladepoint" and "Yanyun Sixteen Sounds", and miHoYo's "Zenless Zone Zero" The platform's zero-commission policy and large core user base are expected to drive user growth [4] Financial Projections - Revenue is projected to be 6,005 million yuan in 2024, 7,313 million yuan in 2025, and 7,955 million yuan in 2026, with year-on-year growth rates of 77 2%, 21 8%, and 8 8% respectively [5] - Net profit is projected to be 783 million yuan in 2024, 1,137 million yuan in 2025, and 1,246 million yuan in 2026, with year-on-year growth rates of 1,043 4%, 45 1%, and 9 6% respectively [5] - Gross margin is projected to be 63 7% in 2024, 64 9% in 2025, and 65 2% in 2026 [5] - Net margin is projected to be 13 0% in 2024, 15 5% in 2025, and 15 7% in 2026 [5] - ROE is projected to be 31 4% in 2024, 31 3% in 2025, and 25 6% in 2026 [5] - EPS is projected to be 1 6 yuan in 2024, 2 4 yuan in 2025, and 2 6 yuan in 2026 [5] - P/E ratio is projected to be 9 3x in 2024, 6 4x in 2025, and 5 8x in 2026 [5] - P/B ratio is projected to be 2 6x in 2024, 1 8x in 2025, and 1 3x in 2026 [5] Company Overview - Current stock price is 16 22 HKD [6] - One-year high and low are 22 25 HKD and 7 47 HKD respectively [6] - Total market capitalization is 7 796 billion HKD [6] - Total shares outstanding are 481 million [6] - Turnover rate over the past 3 months is 50 73% [6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The public beta of "Heart Town" is scheduled for July 17, which is expected to continue driving growth. The game has already garnered over 2.3 million pre-registrations on TapTap with a rating of 9.0, indicating strong interest. The game targets female and casual players, which may contribute to revenue growth and user expansion for TapTap [3] - "Let's Go Muffin" has shown stable performance since its launch on May 15, maintaining a position in the top 10 of the iOS bestseller list, which is anticipated to contribute significantly to the company's revenue [4] - Multiple games are set to be exclusively released on TapTap, including "The Time of Posia" and "The Legend of the Great Hero," which may enhance user engagement and revenue growth due to TapTap's favorable zero-revenue-sharing policy [5] Financial Summary - The company's projected financials for 2024-2026 include: - Revenue: 6,005 million in 2024, 7,313 million in 2025, and 7,955 million in 2026 - Net profit: 783 million in 2024, 1,137 million in 2025, and 1,246 million in 2026 - EPS: 1.6 in 2024, 2.4 in 2025, and 2.6 in 2026 - Current PE ratios are 10.4 for 2024, 7.2 for 2025, and 6.5 for 2026, indicating a favorable valuation outlook [6]

Investment Rating - Maintain "Buy" rating [1][2] Core Views - **Game Performance**: "Let's Go Muffin" has maintained a stable position in the iOS game bestseller list, with its ranking fluctuating but generally staying within the top 10. The game's revenue rebounded after the launch of a new event, with iOS revenue estimated at $32.54 million as of June 30, 2024. Total revenue across all platforms is estimated at approximately RMB 464 million [1] - **New Game Launches**: Heartbeat's self-developed games, including "Heartbeat Town" and "Sword of Linlang," are expected to launch in the second half of 2024. "Heartbeat Town" has a TapTap rating of 9.0 and over 2.3 million pre-registrations, while "Sword of Linlang" has a rating of 7.7 and nearly 2 million downloads [1] - **TapTap Platform**: The platform's daily downloads on iOS reached 31,000 in the first half of 2024, a 103% increase year-over-year. The platform's MAU is expected to recover to over 40 million, driven by the launch of high-quality games such as "Let's Go Muffin" and "DNF" mobile. The removal of "DNF" mobile from some Android app stores may benefit TapTap's ad revenue [1] Financial Forecasts - **Revenue and Profit**: Revenue forecasts for 2024-2026 have been slightly increased to RMB 4.71 billion, RMB 5.09 billion, and RMB 5.35 billion, respectively, representing increases of 10%, 4%, and 2% from previous forecasts. Net profit attributable to shareholders is expected to be RMB 421 million, RMB 597 million, and RMB 781 million for the same periods [1][2] - **Valuation Metrics**: The company's P/E ratio for 2024-2026 is projected at 20x, 14x, and 11x, respectively [2] Market Data - **Market Capitalization**: The company's total market capitalization is HKD 9.046 billion, with a total share capital of 481 million shares [3] - **Stock Performance**: Over the past year, the stock has shown a relative return of 1.9% and an absolute return of -4.5% [4] Game Revenue Analysis - **Revenue Trends**: "Let's Go Muffin" has shown strong revenue performance since its launch, with daily revenue peaking at RMB 2.5 million on June 14, 2024. The game's revenue has been supported by in-app purchases and events [6]

【 广 发 传 媒 & 海 外 】 心 动 公 司 (02400.HK) TapTap 游戏发布会举行,关注《心动小镇》上线表现 核心观点: ⚫ 事件:TapTap 游戏发布会于 6 月 28 日线上举行,根据公司官方微信, 本次发布会为开放式主题,"玩家的夏天,从___开始"。发布会共更新 44 款游戏,分为"移植佳作","续写新篇","次元幻想","YEAH!", "独家游戏"和"聚光灯游戏"六个篇章。聚焦多种品类和风格产品。 ⚫ 头部游戏借力 TapTap 宣传,带动平台活跃提升。本次发布会参会游 戏包括《永劫无间》、《绝区零》、《剑与远征:启程》、《燕云十六声》等 头部大厂重磅产品。其中《永劫无间》更新全新英雄"岳山",《燕云十 六声》首次曝光了新武器"绳镖"。我们认为,知名游戏公司的头部产 品与 TapTap 合作发布更新,有利于平台后续的用户活跃增长。除大厂 产品外,真人恋爱互动电影《完蛋!我被美女包围了》移动版预计 24 年 Q3 上线,TapTap 平台已于 6 月 28 日开放限量体验。建议关注重 点产品密集上线带动下,平台用户活跃表现。 ⚫ 自研游戏测试定档,关注后续上线表现。据公司官微, ...

Investment Rating - The report maintains a "Buy" rating for the company [3][4] - The market price is HKD 19.08, with a sector rating of "Outperform" [1] Core Insights - The self-developed idle game "Let's Go Muffin" has performed well, maintaining a top ten position on the iOS sales chart since its launch in Hong Kong, Macau, and mainland China, and is expected to significantly contribute to the company's 2024 earnings [3][4] - The stable issuance of domestic game licenses and the anticipated release of major titles during the summer are expected to drive revenue growth for the TapTap platform [4] - The company has adjusted its profit forecasts upward for 2024, 2025, and 2026, with projected net profits of RMB 538 million, RMB 690 million, and RMB 827 million respectively, corresponding to P/E ratios of 15.18, 11.82, and 9.87 [4][5] Summary by Sections Stock Performance - The company's stock has shown a 12-month absolute performance of -10.0% and a relative performance of -4.0% compared to the Hang Seng Index [1] Financial Metrics - The total market capitalization is approximately HKD 9,170.59 million, with 480.64 million shares outstanding [2] - The average daily trading volume over the past three months is HKD 75.96 million [2] Game Performance - "Let's Go Muffin" has been a standout product, achieving a peak ranking of fourth on the iOS sales chart and maintaining strong sales since its launch [4] - The company has a solid pipeline with four games in reserve, two of which have already received licenses [4] Market Trends - The report highlights a trend of increasing bargaining power for quality content providers in the gaming industry, which is expected to benefit the company and its platform, TapTap [4] - The anticipated influx of major mobile games during the summer is expected to enhance user engagement and advertising revenue on TapTap [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][33]. Core Views - The performance of the self-developed game "Let's Go Muffin" is impressive and is expected to drive rapid growth in the company's performance. The game has maintained a position in the top 10 of the iOS bestseller list in Hong Kong and Taiwan since its launch on January 24, 2024, with revenue reaching 460 million RMB by the end of May. The game also ranked 4th in the iOS bestseller list in China after its launch on May 15, 2024, with an estimated revenue of 300 million RMB in May [3][12][34]. Summary by Sections 1. Performance of "Let's Go Muffin" - "Let's Go Muffin" has shown strong performance in both Hong Kong and Taiwan, consistently ranking in the top 10 of the iOS bestseller list. The game generated 460 million RMB in revenue in the region by the end of May 2024 [11][12]. - The game achieved a peak ranking of 4th in the iOS bestseller list in China, only behind major titles like "DNF Mobile," "Honor of Kings," and "Peacekeeper Elite" [3][12]. 2. R&D and Publishing Capabilities - The company has improved its R&D and publishing capabilities, which may enhance the success rate of its products. The return of Huang Xiwei, the original co-founder of TapTap, is expected to further strengthen the company's publishing capabilities [4][21]. 3. Growth of TapTap - TapTap's traffic and user base continue to grow, with several exclusive and major games driving further increases. The platform achieved a historical high ranking of 13 in the iOS free app list in April 2024 [5][26]. - The unique zero-revenue-sharing model of TapTap is expected to enhance its position in game publishing, leading to rapid revenue growth and accelerated profit release [5][28]. 4. Financial Forecasts and Investment Recommendations - The company is expected to see significant revenue growth driven by "Let's Go Muffin" and other reserve games, with projected net profits of 783 million, 1.137 billion, and 1.246 billion RMB for 2024-2026, respectively [3][34]. - The estimated earnings per share (EPS) for the same period are projected to be 1.6, 2.4, and 2.6 RMB, with corresponding price-to-earnings (P/E) ratios of 11.6, 8.0, and 7.3 times [3][34].

2024 年 06 月 13 日 公司研究 研究所： [Table_Title] 《出发吧麦芬》表现亮眼， 平台重回 TAPTAP 证券分析师： 姚蕾 S0350521080006 yaol02@ghzq.com.cn 增长，有望推动公司 年业绩增长 2024 ——心动公司（2400.HK）公司研究（无评级） 最近一年走势 事件: 《出发吧麦芬》国服表现亮眼：2024年5月15日，公司自研休闲题材 放置挂机游戏《出发吧麦芬》国服公测。据七麦数据，《出发吧麦芬》在 iOS畅销榜排名稳中有升，截至6月11日畅销榜排名Top10。 投资要点:  5月15日《出发吧麦芬》国服上线，延续在港澳台地区优异表现， 有望推动公司2024年业绩增长。 相对恒生指数表现 2024/06/13 表现 1M 3M 12M （1）公司自研休闲题材放置挂机游戏《出发吧麦芬》国服于5月15日 心动公司 9.6% 24.0% -12.3% 正式上线。据七麦数据，《出发吧麦芬》在5月14日预下载阶段即 恒生指数 -5.2% 6.0% -7.2% 排名iOS免费榜（总榜）和免费榜（游戏）第1名；5月15日上线 后《出发吧麦芬》在iOS畅销榜排 ...

Summary of the Conference Call Company Overview - The report focuses on the company "心动公司" (Xindong Company), which operates in the media and internet sector [1] Key Points and Arguments - The analyst from 广发证券 (GF Securities) provided an in-depth analysis of Xindong Company's performance and market position [1] Additional Important Content - The conference call included insights into the company's strategic direction and potential growth opportunities within the media and internet industry [1]

Investment Rating - The report maintains a "Buy" rating for the company, with a current price of 19.58 HKD and a fair value of 29.88 HKD per share [4]. Core Insights - The company's newly launched self-developed game "Let's Go Muffin" has shown excellent performance, significantly boosting the company's revenue. The game entered the top 10 best-selling list in its first week and reached the fourth position by May 28, 2024 [2][10]. - The self-developed games are expected to enhance user activity on the TapTap platform, with increased advertising revenue driven by intensified competition for user acquisition [2][28]. - Cost reduction and efficiency improvements are evident, with a decrease in overall expenses and a reduction in employee numbers from 2,327 in 2021 to 1,452 in 2023, leading to an expected improvement in profitability [2][38]. Summary by Sections 1. Breakthrough in Self-Developed Games - The self-developed game "Let's Go Muffin" launched in January 2024 in the Hong Kong, Macau, and Taiwan markets and in May 2024 in mainland China, achieving a top 10 position in sales shortly after launch [10]. - The game is expected to have a strong revenue performance, contributing positively to the company's overall financial results [10][13]. 2. Increased Activity on TapTap and Advertising Revenue Growth - The launch of "Let's Go Muffin" is anticipated to drive user growth on the TapTap platform, as the game requires a TapTap account for login, which may lead to increased advertising revenue due to heightened competition for user acquisition [28][29]. - The summer of 2024 is expected to see a high density of new game launches, which will likely increase user acquisition costs and advertising revenue [21][23]. 3. Financial Performance: Cost Reduction and Efficiency Gains - The company reported a revenue of 33.89 billion RMB in 2023, a slight decline of 1.22% year-on-year, but with a gross profit increase of 12.7% [38]. - The company has successfully reduced sales expenses by 6.23% to 8.65 billion RMB and R&D expenses by 20.89% to 10.16 billion RMB, indicating a focus on core products and cost efficiency [38][40]. - The net loss for the company narrowed significantly to 0.83 billion RMB in 2023 from 5.53 billion RMB in 2022, suggesting a positive trend in financial recovery [38]. 4. Profit Forecast and Investment Recommendations - Revenue forecasts for 2024 to 2026 are projected at 52.63 billion RMB, 62.46 billion RMB, and 66.74 billion RMB, respectively, with net profits expected to reach 5.58 billion RMB, 7.64 billion RMB, and 8.35 billion RMB [2][39]. - The report employs a segmented valuation method, estimating the game business at 72.09 billion RMB and the community business at 58.55 billion RMB, leading to a total fair valuation of 143.6 billion HKD [2].