Core Viewpoint - The company, Friendship Time (6820.HK), has issued a positive profit forecast for the first half of 2025, reflecting a strong recovery in the gaming industry and confidence from both the company and its major shareholders [1][2]. Industry Summary - The gaming industry in China experienced a growth rate of nearly 15% in the first half of 2025, with actual sales revenue reaching 168 billion yuan, a year-on-year increase of 14.08% [2]. - The number of gaming users in China reached approximately 679 million, marking a historical high with a growth of 0.72% [2]. - Self-developed games generated overseas sales revenue of $9.501 billion, reflecting a year-on-year increase of 11.07%, indicating ongoing global competitiveness of Chinese gaming companies [2]. Company Performance Summary - Friendship Time expects revenue for the first half of 2025 to be between 600 million to 650 million yuan, representing a year-on-year growth of 14.1% to 23.6% [2]. - The company anticipates a profit of approximately 38 million to 44 million yuan, marking a turnaround from losses with a year-on-year increase of 152.5% to 160.8% [2]. - The growth is primarily driven by the strong performance of mini-games such as "Dulala's Promotion" and "Lingyun Nuo," along with an increase in high-margin channel revenue contributing to a gross margin increase of about 5 percentage points [2]. Game Highlights - The new game "Chaotic Chef Party" launched on May 28, 2025, quickly topped various app store charts and features collaborations with over 30 well-known food brands [3]. - The game has also initiated a second phase of the "Chef Creator" incentive program to support content creators [3]. - "Dulala's Promotion," another key product, has received positive feedback in both domestic and international markets, particularly in South Korea, where it reached the iOS game sales chart's Top 30 [4]. Shareholder Returns - The company has a strong commitment to shareholder returns, having distributed over 750 million yuan in cash dividends since its IPO, exceeding the net proceeds from its initial public offering [5]. - The company has repurchased approximately 3.7% of its total issued share capital as part of its share incentive plan [5]. - The chairman and major shareholder has committed not to sell any shares in the open market for 12 months starting from July 17, 2025, to reinforce confidence in the company's long-term prospects [5].

Group 1 - The 22nd China International Digital Interactive Entertainment Expo attracted over 800 exhibitors and more than 410,000 attendees, generating approximately 661 million yuan in surrounding service consumption [1] - The "2025 China Game Industry Report" indicates that both domestic and overseas market revenues for the Chinese gaming industry saw year-on-year growth in the first half of the year, with new growth opportunities and commercialization directions emerging [1] - The global mobile and PC gaming market is expected to exceed $120 billion by 2028, with mobile game in-app purchase revenue projected to grow by 6% in 2025, reaching $85.4 billion [1] Group 2 - Analysts noted that the gaming industry is experiencing a robust recovery, with increased foot traffic and player enthusiasm at this year's expo compared to last year [2] - The domestic mobile game market size grew by 20% year-on-year from January to May, while the number of domestic game licenses increased by 21% in the first half of the year, reaching a new high for June [2] - Gaming platforms are expected to benefit from increased user activity and advertising revenue, alongside the launch of new games and the steady operation of established titles [2] Group 3 - The gaming sector includes companies listed in Hong Kong such as Tencent (00700), NetEase-S (09999), Bilibili-W (09626), and others [3]

Investment Rating - The industry investment rating is "Positive" and maintained [7] Core Insights - In July, the National Press and Publication Administration approved 127 domestic game titles, including key products from Huatuo and Giant Network. The summer gaming season has seen strong performance from multiple new games, indicating a sustained high level of activity in the gaming sector [2][4] - The new game cycle, favorable policy trends, and AI catalysis are expected to drive continued improvement in the gaming sector's fundamentals, suggesting that the valuation of the gaming sector still has upward elasticity. Investors are encouraged to continue monitoring investment opportunities in this sector [2][4] Summary by Sections Game License Issuance - In July, 127 domestic games received approval, including Huatuo's "Kingshot" and Giant Network's "Famous Generals Kill." Additionally, 7 imported game licenses were granted [9] - "Kingshot" has seen significant revenue growth, doubling in May and increasing by 56% in June, ranking third in China's mobile game overseas revenue growth [9] New Game Performance - Several new games from listed gaming companies have performed strongly during the summer season. For instance, Giant Network's "Supernatural Action Group" reached the top 4 in the free game rankings and top 20 in the revenue rankings on its launch day [9] - Other notable performances include Jiubite's "Staff Sword Legend," which entered the iOS revenue rankings top 13, and Tencent's "Dungeon and Fighter Mobile," which topped the iOS revenue rankings [9] Future Outlook - The pipeline for key gaming companies is robust, with several new titles set to launch, including "Tomb Raider: Journey" and "Douluo Continent: Evil Legend" [9] - The new game cycle is expected to enhance the sector's fundamentals, with ongoing policy stability and the integration of AI in gaming likely to boost valuations and performance [9]

Core Viewpoint - The company forecasts a profit of 38 to 44 million yuan for the first half of 2025, marking a turnaround from losses, with expected revenue of 600 to 650 million yuan, representing a year-on-year growth of 14% to 24% [1] Group 1: Revenue and Profit Performance - The company anticipates double-digit year-on-year revenue growth for the first half of 2025, with revenue remaining stable compared to the previous period, driven by multiple products generating incremental revenue [1] - The company’s profit forecast for the first half of 2025 indicates a significant recovery, with expected profits between 38 to 44 million yuan, compared to previous losses [1][2] Group 2: Product Performance and Market Strategy - The company is leveraging mini-games to attract new users, with successful launches of mini-program versions of existing products like "Dulala's Promotion" and "Lingyun Nuo," which have seen significant revenue growth and rankings in popular gaming charts [1] - Established products such as "Xi Fei Chuan" and "Fu Sheng" are maintaining stable revenue streams, contributing to a solid profit base [1] - The new game "Violent Chef" launched on May 28 is expected to generate over 10 million yuan in its first month, indicating potential for growth in the casual gaming segment [1][2] Group 3: Financial Metrics and Future Outlook - The company reported an increase in gross margin by approximately 5 percentage points due to a higher proportion of revenue from high-margin channels in the first half of 2025 [2] - The company has successfully reduced R&D and sales expense ratios, attributed to efficiency improvements driven by AI applications, enhancing overall cost management [2] - The company maintains its net profit forecast, with the current stock price reflecting a P/E ratio of 13 for 2025 and 11 for 2026, while raising the target price by 71% to 1.06 HKD, indicating an upward potential of 13% [2]

Core Viewpoint - The company maintains its profit forecast for 友谊时光 (06820) and raises the target price by 71% to HKD 1.06, reflecting a potential upside of 13% based on improved industry valuations and product potential [1] Group 1: Revenue and Profit Forecast - The company expects 1H25 revenue to be between 600-650 million, representing a year-on-year growth of 14%-24%, with profits projected between 38-44 million, indicating a turnaround from losses [1] - The revenue growth is driven by multiple products achieving incremental revenue, particularly from mini-games that attract new users [2] Group 2: Product Performance - Mini-games are revitalizing product performance, with titles like 《杜拉拉升职记》 and 《凌云诺》 achieving significant rankings in popular gaming charts [2] - Established products like 《熹妃传》 and 《浮生》 maintain stable revenue contributions, ensuring a solid profit margin [2] Group 3: Profitability and Cost Management - The company reports an increase in gross margin by approximately 5 percentage points due to a higher proportion of high-margin channel revenue [3] - Cost management is effective, with reductions in R&D and sales expense ratios attributed to AI applications enhancing efficiency and return on investment [3] Group 4: New Game Developments - The new season of 《暴吵萌厨》 launched on July 14, introducing new gameplay and levels, with expectations for user growth and monetization [4] - The company has several games in development, with some already receiving approval, indicating a strong pipeline for future releases [4] - The chairman's commitment to not sell shares in the next 12 months reflects confidence in the company's business and product outlook [4]

Core Viewpoint - The company, Youyi Shiguang, anticipates a revenue of approximately RMB 600 million to 650 million for the six months ending June 30, 2025, representing a year-on-year growth of about 14.1% to 23.6% [1] - The company expects a profit of approximately RMB 38 million to 44 million, marking a turnaround from loss to profit, with a year-on-year increase of about 152.5% to 160.8% [1] Group 1 - The primary reason for the profit growth is attributed to the revenue increment from new games, particularly the mini-games "Dulala Promotion" and "Lingyun Nuo," which performed exceptionally well [1] - The increase in the proportion of high-margin channel revenue contributed to a gross margin growth of approximately 5 percentage points [1] - The company experienced a decrease in both research and development expense ratio and sales expense ratio during the reporting period [1] Group 2 - The mobile game "Chaotic Chef" was launched for public testing on May 28, 2025, quickly topping the charts on various platforms including Apple App Store and Huawei [2] - The game features collaborations with over 30 well-known food and snack brands, enhancing its market presence and engagement [1][2] - The company has several games in development, including "Code: Lover," "Code: Flower," "Code: Relic," and "Code: MX," which are currently undergoing testing [2] Group 3 - The company is committed to continuous innovation and resource optimization, with the board expressing confidence in the long-term development and prospects of the group [2] - The chairman and executive director, Jiang Xiaohuang, has committed not to sell shares in the open market for the next 12 months [2]

Group 1 - The company, Youyi Shiguang (06820.HK), expects to report revenues of approximately RMB 600 million to RMB 650 million for the six months ending June 30, 2025, representing a year-on-year growth of about 14.1% to 23.6% [1] - The company anticipates a profit of approximately RMB 38 million to RMB 44 million, marking a turnaround from losses and a year-on-year increase of about 152.5% to 160.8% [1] - Key drivers for the profit growth include new game revenue contributions, an increase in the proportion of high-margin channel income leading to a gross margin increase of about 5 percentage points, and a reduction in both research and development expenses and sales expenses [1] Group 2 - The new mobile game "Violent Chef" was launched on May 28, 2025, and quickly topped various app store rankings, collaborating with popular snack brands and over 30 food-related brands for promotional activities [1] - The second season of "Violent Chef," titled "Spirit Forest," officially launched on July 14, 2025, introducing new levels and casual gameplay, along with a partnership with Ele.me for a special event [2] - The company has several games in development, including "Code: Lover," "Code: Flower," "Code: Relic," and "Code: MX," which are currently undergoing testing [2]

Group 1 - The company has authorized its chairman to decide on the disposal of 52.9 million shares of Friendship Time (06820.HK) held by its wholly-owned subsidiary, Aisi Xi (Hong Kong) Limited, based on market conditions and stock performance [1] - As of now, Aisi Xi has fully sold its holdings of 52.9 million shares of Friendship Time, with the transaction amount impacting the company's financials [1] - The disposed financial asset is classified as "trading financial assets" in the company's financial statements, measured at fair value with changes recorded in the current profit and loss [2] Group 2 - The disposal is expected to positively impact the company's net profit for 2025, with the estimated effect amounting to approximately 183.76% of the audited net profit attributable to shareholders of the listed company [2] - The investment income generated from this disposal, after deducting related fees and taxes, will have a favorable influence on the company's net profit for 2025 [2] - The company will process this transaction according to relevant accounting standards, with final figures to be confirmed in the annual audit report [2]

智通财经6月16日电，截至发稿，金山软件(03888.HK)涨8.38%、心动公司(02400.HK)涨5.74%、友谊时 光(06820.HK)涨4.08%、多牛科技(01961.HK)涨3.95%。 港股游戏股走强 金山软件涨8% ...

Core Viewpoint - The company possesses a unique ability to create hit products in the traditional advantageous ancient-style RPG female-oriented game sector, while maintaining a long-term operational strategy, resulting in stable revenue performance from titles like "Floating Life for the Emperor" and "Lingyun Nuo" [1][2] Game Performance - The recent game "Violent Chef" has shown impressive performance, currently ranking first on the iOS free game chart, with plans for increased user acquisition to enhance its long-term development and contribution to revenue and profit [1][3] - The game features a differentiated cooking gameplay combining "Chinese cuisine kitchen party + restaurant casual management," appealing to a broad audience [1][3] Product Pipeline and Market Expansion - The company is actively expanding its product categories, including male-oriented games and overseas markets, with a rich pipeline expected to yield multiple game tests in Q3/Q4 [2][5] - The company has improved its publishing system, focusing on ROI in project initiation and distribution, leading to successful low-cost, high-return games like "Ink Sword Jianghu" and "Lingyun Nuo" [2][5] Cultural and Brand Integration - The company has successfully enhanced market penetration and user engagement through diverse brand collaboration strategies, creating a unique "culture + consumption" ecosystem [2] - Collaborations with cultural landmarks and consumer brands have strengthened the cultural depth of its IPs and increased foot traffic to physical locations [2] Financial Forecast - Revenue is projected to improve gradually, with expected revenues of 1.45 billion and 1.76 billion yuan for 2025 and 2026, respectively, reflecting year-on-year growth of 25% and 21% [5] - Adjusted net profits are forecasted to be 85 million and 175 million yuan for the same years, indicating stable profitability [5]