CMGE(HK:00302) Cai Fu Zai Xian·2025-05-21 09:55Core Viewpoint - The stock price of Zhongyou Technology Group Co., Ltd. surged by 24.66% to HKD 0.455 per share, reflecting positive investor sentiment driven by recent product launches and strategic initiatives [1] Company Developments - Zhongyou has accelerated its plan to launch 18 games by 2025, having already released 6 titles as of May, including popular games in both mainland China and overseas markets [2] - The company’s recent game releases, such as "Douluo Dalu: Reverse Time" and "Dou Po Cang Qiong: Wushuang," have garnered significant player interest, with over 5 million pre-registrations for the former [1][2] - The upcoming release of "Chat Group Daily Life" on May 27 is expected to further enhance the company’s product lineup [2] Industry Context - The Chinese gaming industry is experiencing a recovery, with Q1 2025 revenues reaching CNY 857.04 billion, a year-on-year increase of 17.99% [2] - The issuance of game licenses has stabilized, with 510 new titles approved in 2025, providing a robust supply of new products to the market [2] - Policy support for the gaming sector, particularly in promoting overseas expansion, is expected to benefit companies like Zhongyou [2] Analyst Insights - Analysts believe that the combination of a rich product pipeline, focus on mini-games and international markets, along with favorable industry conditions and policy support, positions Zhongyou and similar companies for potential growth opportunities [3]