自研大模型构筑技术底座，AI 赋力全链路降本增效。公司以自研游戏行业大模型"小七"为核心，构建 了覆盖研发、运营、发行全链路的AI 应用体系。在生产经营环节，AI 技术在2D 美术、3D 建模、多语 言翻译等领域的辅助占比均已超过30%，部分环节甚至达到80%以上，显著提升了开发效率并降低了运 营成本。同时，AI 技术深度融入公司游戏内容创新，推动智能NPC、个性化剧情等前沿功能的实现， 为下一代游戏的沉浸式体验提供技术支撑，助力公司构筑长期竞争的技术壁垒。 业绩稳健增长，高分红彰显投资价值。公司营收保持稳健增长态势，2024 年营业收入达174.4 亿元，同 比增长5.4%。利润端改善显著，2025 年第三季度归母净利润同比大幅增长49.24%，主要受益于销售费 用优化及游戏产品周期管理成效显现。同时，公司高度重视股东回报，2024 年累计分红与回购金额达 23 亿元，2025 年延续季度分红规划，前三季度已实施分红约13.86 亿元，分红率约59%，持续稳定的高 分红政策为投资者提供良好回报保障。 维持" 强烈推荐" 投资评级。我们预计公司2025-2027 年收入分别163.6/191.7/206.3 ...

Core Viewpoint - The report from CITIC Securities highlights the robust financial performance of Sanqi Interactive Entertainment, with a significant year-on-year increase in net profit for the first three quarters of 2025, indicating strong growth potential in the gaming industry [1] Financial Performance - For the period of January to September 2025, the net profit attributable to shareholders reached 2.345 billion yuan, representing a year-on-year growth of 23.57% [1] - In Q3 2025, the net profit attributable to shareholders was 944 million yuan, showing a remarkable year-on-year increase of 49.24% [1] - The non-recurring net profit for Q3 was 870 million yuan, reflecting a year-on-year growth of 45% [1] Dividend Distribution - The company plans to distribute a cash dividend of 2.10 yuan for every 10 shares to all shareholders [1] Product and Technology Development - The company has a rich product matrix, and its future pipeline is expected to be promising [1] - There is a commitment to deeply integrate AI technology into game development and operations [1] Regulatory Environment - The company has addressed regulatory risks, which is anticipated to lead to a recovery in its valuation [1]

Core Viewpoint - The gaming industry is experiencing a sustained upward trend, with a solid foundation for valuation recovery, particularly for leading companies like 37 Interactive Entertainment [1] Group 1: Industry Overview - The gaming sector is benefiting from a combination of policy, technology, and capital, creating a new investment window. Since 2025, both domestic and imported game licenses have been issued monthly, leading to a significant increase in supply and boosting market confidence. As of November this year, 1,532 domestic licenses and 92 imported licenses have been issued, marking a substantial year-on-year increase. The total revenue of China's gaming market grew by 7.11% year-on-year in the first three quarters [2][3] - The deep integration of AI technology is reshaping research and operations, driving cost reduction and content upgrades, which further enhances performance expectations for the sector. The ongoing expansion of overseas markets continues to open up growth potential for the industry [2] Group 2: Investment Trends - There is a noticeable trend of funds increasing their holdings in the gaming sector. In Q3 2025, active funds significantly increased their positions in gaming stocks, with 7 out of the top 10 media stocks being gaming companies, indicating that gaming is becoming a primary focus for fund allocation in media [3] - The overall valuation of the gaming sector remains low, with potential for significant upward movement as previous deep adjustments have created a favorable environment for recovery. According to research from Zheshang Securities, the gaming sector is expected to reach a 20x P/E valuation by 2026, compared to the current average of approximately 16x P/E [3] Group 3: Company Spotlight - 37 Interactive Entertainment - 37 Interactive Entertainment exemplifies a strong performer with robust earnings growth, high dividends, and low valuation, making it an attractive investment opportunity. In Q3, the company achieved a net profit of 944 million yuan, a year-on-year increase of 49.24%, surpassing previous expectations [5] - The company has optimized cost efficiency, with a 24% year-on-year decrease in sales expenses, leading to an improved profit outlook. Additionally, 37 Interactive is exploring AI capabilities and expanding its overseas presence, which are expected to contribute to sustainable growth [6] - The company's overseas revenue has grown significantly from 356 million yuan in 2015 to 5.722 billion yuan in 2024, representing an approximate 15-fold increase. In the first half of this year, overseas business accounted for 32.1% of total revenue [6] - 37 Interactive maintains a high dividend payout, with a Q3 cash dividend of 2.10 yuan per 10 shares, totaling 462 million yuan. Combined with previous dividends, the total payout for the year is expected to reach 1.386 billion yuan, representing 59% of net profit, which is significantly higher than the industry average [7] - The current valuation of 37 Interactive is substantially below its historical average and the reasonable valuation of 30x for leading gaming companies, with a PE-TTM of less than 15x and a PB at historical lows, indicating considerable room for valuation recovery [7]

Core Viewpoint - The gaming industry is experiencing a sustained upward trend, with a solid foundation for valuation recovery, particularly for leading companies like 37 Interactive Entertainment [1] Group 1: Industry Overview - The gaming sector is benefiting from a combination of policy, technology, and capital, creating a new investment window. Since 2025, both domestic and imported game licenses have been issued monthly, leading to a significant increase in supply and boosting market confidence. As of November this year, 1,532 domestic licenses and 92 imported licenses have been issued, marking a substantial year-on-year increase. The total revenue of China's gaming market grew by 7.11% year-on-year in the first three quarters [2][3] - The deep integration of AI technology is reshaping research and operations, driving cost reduction and content upgrades, which further enhances performance expectations for the sector. The ongoing expansion of overseas markets continues to open up growth potential for the industry [2] Group 2: Investment Trends - There is a noticeable trend of funds increasing their holdings in the gaming sector. In Q3 2025, active funds significantly increased their positions in gaming stocks, with 7 out of the top 10 media stocks being gaming companies, indicating that gaming is becoming a primary focus for fund allocation in media [3] - The overall valuation of the gaming sector remains low, with potential for significant upward movement as previous deep adjustments have created a favorable environment for recovery. According to research from Zheshang Securities, the gaming sector is expected to reach a 20x P/E valuation by 2026, compared to the current average of approximately 16x P/E [3] Group 3: Company Spotlight - 37 Interactive Entertainment - 37 Interactive Entertainment exemplifies a strong performer with robust earnings growth, high dividends, and low valuation, making it an attractive investment opportunity. In Q3, the company achieved a net profit of 944 million yuan, a year-on-year increase of 49.24%, surpassing previous expectations [5] - The company has optimized cost efficiency, with sales expenses decreasing by 24% year-on-year, leading to an improved profit outlook. Additionally, 37 Interactive is exploring AI capabilities and expanding its overseas presence, which are expected to contribute to sustainable growth [6] - The company's overseas revenue has grown significantly from 356 million yuan in 2015 to 5.722 billion yuan in 2024, representing an approximate 15-fold increase. In the first half of this year, overseas business accounted for 32.1% of total revenue [6] - 37 Interactive maintains a high dividend payout, with a cash dividend of 2.10 yuan per 10 shares announced for Q3, totaling 462 million yuan. The cumulative dividend for the year is expected to reach 1.386 billion yuan, representing 59% of net profit, which is significantly higher than the industry average [7] - The current valuation of 37 Interactive is substantially below its historical average and the reasonable valuation of 30x P/E for leading gaming companies, with a PE-TTM of less than 15x and a PB at historical lows, indicating considerable room for valuation recovery [7]

Core Insights - The article highlights the ongoing trend of Chinese gaming companies successfully expanding into overseas markets, with large firms optimizing classic titles and smaller firms innovating to break through [2][10] - The "Evergreen List" and "Potential Evergreen List" are introduced, showcasing games that have maintained strong performance in international markets [2][10] Group 1: Evergreen Games - In November, 26 games made it to the "Evergreen List," an increase of 3 titles from October, with notable entries including "Gossip Harbor," "PUBG MOBILE," and "Puzzles & Survival" [2][9] - The total estimated revenue for these 26 games in November reached approximately $299 million, equivalent to about 2.11 billion yuan, with 9 games exceeding $10 million in revenue [2][9][10] Group 2: Potential Evergreen Games - The "Potential Evergreen List" features 14 games, with a decrease of 4 titles from October, indicating a competitive landscape [2][10] - "Whiteout Survival" led the list with an estimated revenue of $86.21 million (approximately 609 million yuan) in November, followed by "崩坏:星穹铁道" and "Top Heroes," each surpassing $20 million [10][11] Group 3: Industry Trends and Support - The gaming industry faces challenges due to global economic pressures, but there are supportive policies from various cities in China aimed at facilitating game exports [11] - The adoption of AI technologies is helping to reduce costs and improve efficiency in game development and marketing strategies, providing a more sustainable path for Chinese games in international markets [11]

Market & Product Situation - The game "Survival for 33 Days" by 37 Interactive Entertainment has rapidly climbed the WeChat mini-game sales chart, moving from rank 71 on November 27 to rank 26 by December 7, a rise of 68 positions in just 12 days [1][3][13] - The game is set in a post-apocalyptic world with themes of survival, where players act as survivor leaders to gather companions and build defenses against infected creatures [3][15] - The gameplay features a dual system of "core development + exploration," with character roles such as warrior, tank, support, and ranged, each capable of upgrading and unlocking new skills [3][16] - The game map employs a "fog of war" design, requiring players to meet conditions to unlock new areas, enhancing the sense of exploration and providing clear growth objectives [5][18] - The visual presentation uses a realistic apocalyptic art style, enhancing immersion, while combat effects are designed to maintain engagement without causing visual fatigue [5][18] Marketing Strategy - The advertising strategy for "Survival for 33 Days" began in mid-November with a modest daily ad volume of under 100, which increased significantly by late November [1][9][19] - The main advertising creatives focus on the themes of "survival" and "apocalypse," using straightforward messaging to quickly convey the game's core value [9][22] - The ads include nostalgic elements targeting users from the 80s and 90s, evoking memories of classic survival games, which helps stimulate download interest [9][20] - The marketing approach is characterized by low-key spending, allowing the company to gauge player interest without overwhelming exposure [9][22] Industry Insights - The survival RPG segment is still in a blue ocean phase, with unmet player demand, allowing 37 Interactive Entertainment to differentiate itself from competitors in the crowded survival SLG market [1][10][23] - The successful launch of "Survival for 33 Days" indicates the potential for diverse development within the survival mini-game genre, suggesting future expansions into various sub-genres [1][11][24] - The game has received an APP license, indicating potential for dual-platform operation, which could enhance user engagement and lifecycle value [1][10][23]

Summary of Key Points from the Conference Call Industry Overview - The gaming sector's valuation has reached a lower limit of 15 times, with expectations of maintaining high prosperity and performance growth certainty through 2026, making it an attractive investment opportunity [1][3][25] - The A-share market recommends a "3+2" combination: Giant Network, Kaiying Network, and Century Huatong as stable fundamentals; Gibit and 37 Interactive are positioned lower but showing recent improvements [1][4] Company-Specific Insights Tencent - Expected to launch multiple mid-sized new games in 2026, with a diverse range of genres [7] - Notable titles include "Under One Person," "Rock Kingdom World," and "Monster Hunter Traveler" [7] NetEase - Anticipates additional revenue of 2-3 billion from international IP adaptations and domestic MMO games [2][24] - Key upcoming titles include "Forgotten Sea" and "Infinite," with the former developed by the team behind "Identity V" [7][24] Giant Network - "Famous General Kill" is expected to contribute 200-300 million in profit, with "Supernatural Action Group" potentially increasing annual revenue to 7-8 billion if successful during the Spring Festival [10][12] Kaiying Network - The "Legend Box" platform is driving growth, with DAU expected to reach 650,000 to 700,000 by the end of 2026, and annual advertising revenue projected at around 2.4 billion [10][13] Bilibili - Strong growth in advertising business, with expectations to outperform the overall internet advertising growth rate [21] - Anticipated game revenue growth in the low double digits, with "Three Kingdoms Hundred Generals Card" projected to generate 1-1.5 billion [21] Gibit - Recent performance impacted by a decline in revenue from "Sword of the World," but new game "Nine Mu of the Wild" expected to contribute 1-1.5 billion [19][20] Heart Company - Facing stock price pressure but has potential due to rapid progress in programmatic advertising, with profits expected to reach 150-200 million in 2026 [22] Market Trends and Predictions - The gaming sector is expected to maintain strong growth certainty compared to other sectors, with a focus on identifying high-certainty investment targets [25] - The first quarter of 2026 is anticipated to be stable, with significant product launches concentrated in the summer [11][25] Additional Insights - The competitive landscape is expected to increase in 2026, but companies will focus on their strengths without excessive suppression of smaller firms [11] - The overall sentiment is optimistic for the gaming industry, with a recommendation for investors to strategically select stocks based on performance certainty and market conditions [25]

Investment Overview - The company’s wholly-owned subsidiary, 37 Starseek Co., Limited, plans to invest in Lighthouse Founders' Fund L.P., signing a subscription agreement recently. The total scale of the fund is expected to be no more than $80 million, with 37 Starseek intending to contribute up to $2 million, representing approximately 2.5% of the fund's size if the total reaches $80 million [1][5]. Investment Purpose and Strategy - The investment aims to target high-quality enterprises in AI and other related technology fields, aligning with the company's strategic layout in cutting-edge technology and achieving capital appreciation [2][11]. Fund Management and Structure - Lighthouse Founders' Fund GP Ltd. serves as the general partner, focusing on investment opportunities in AI applications across various sectors. The fund is structured as an exempted limited partnership, with a lifespan of 10 years, extendable by the general partner [3][6][9]. Financial and Operational Details - The investment will be made using the company’s own funds, not involving raised capital, and does not constitute a related party transaction or a major asset restructuring as per relevant regulations. The decision has been approved by the company’s chairman [2][3][4]. Risk and Impact Assessment - The company acknowledges potential uncertainties in the fund's investment implementation and the risk of insufficient capital raising. However, partnering with a professional investment institution is expected to mitigate investment risks and enhance potential returns, with no significant immediate impact on the company's financial status [12][13]. Compliance and Disclosure - The company commits to adhering to relevant regulations and will fulfill information disclosure obligations regarding the investment's progress [3][16].

Summary of China Online Gaming Industry Journal (Nov 2025 Edition) Industry Overview - The report focuses on the **China Online Gaming Industry**, highlighting key data and updates from various companies within the sector, including **Century Huatong**, **37 Interactive Entertainment**, **G-Bits**, and **Kingnet** [1][22]. Key Highlights 1. **Industry Growth**: - The China domestic game market reached **Rmb 31.4 billion** in October 2025, reflecting a **7.8% year-over-year (yoy)** and **5.7% month-over-month (mom)** growth, primarily driven by National Day promotions [1][22]. - The **PC gaming segment** grew by **29.4% yoy** and **1.9% mom** to **Rmb 7.23 billion**, with notable contributions from games like **Delta Force** (Tencent) and **Where Winds Meet** (NetEase) [1][22]. - The **mobile gaming segment** saw a **2.4% yoy** and **5.3% mom** increase to **Rmb 22.6 billion**, driven by promotions for **HoK** (Tencent) and **Genshin Impact** (miHoYo) [1][22]. 2. **Company Performance**: - **Century Huatong**'s game **Whiteout Survival** climbed to **3** in mobile grossing rank, adding over **Rmb 100 million** in sequential grossing [1][22]. - **Overseas grossing** from Chinese studios increased by **11.9% yoy** and **11.0% mom** to **US$ 1.80 billion**, with top performers including **Arknights** (Hypergryph) and **Genshin Impact** (miHoYo) [1][22]. 3. **Investment Outlook**: - Despite a soft sentiment in the A-share gaming sector, the report maintains a positive outlook for most A-share gaming companies, citing a rich game pipeline and competitive advantages in overseas markets [1][22]. - The recommended pecking order for A-share gaming companies is: **Century Huatong > Kingnet > Giant Network > G-Bits > 37 > Perfect World** [1][22]. Company Updates - **Century Huatong**: - Announced the first beta for **Uncharted Waters: Origin** and **La Tale Mobile**, indicating ongoing development and expansion in mobile gaming [2]. - **37 Interactive Entertainment**: - Launched a survival RPG **Survival in 33 Days**, which quickly entered the top 30 in WeChat mini game grossing [2]. - **G-Bits**: - Conducted the final beta for **Jiu Mu Zhi Ye**, with an official launch scheduled for December 18 [2]. - **Kingnet**: - Announced a new Android closed paid beta for **Soul Land** [3]. Additional Insights - The report emphasizes the potential for **portfolio diversification** through investments in the online gaming sector, especially in light of current market conditions focused on AI [1][22]. - The performance of mobile games during promotional periods, such as National Day, highlights the importance of marketing strategies in driving revenue growth [1][22]. This summary encapsulates the essential insights and data from the China Online Gaming Industry Journal, providing a comprehensive overview of the current state and future outlook of the sector.

Core Viewpoint - Company 37 Interactive Entertainment (三七互娱) announced its subsidiary 37Starseek's investment in Lighthouse Founders' Fund L.P., aiming to enhance its strategic positioning in the AI and technology sectors [1] Investment Details - 37Starseek will invest up to $2 million as a limited partner in Lighthouse Founders' Fund L.P., which has a total expected size of no more than $80 million [1] - The general partner, Lighthouse Founders' Fund GP Ltd., and its affiliates will contribute at least 2% of the total fund size [1] - If the fund reaches its maximum size of $80 million, 37Starseek's investment will represent approximately 2.5% of the total fund [1] Strategic Objectives - The investment will focus on high-quality companies in the AI and related technology sectors, aligning with the company's strategic development in cutting-edge technology and capital appreciation [1]