CENTURY HUATONG(SZ:002602) Zheng Quan Shi Bao Wang·2025-08-04 13:12Core Viewpoint - The gaming sector has seen a significant surge this year, with a cumulative increase of nearly 40%, largely driven by the strong performance of leading company ST Huatuo, whose stock price has risen over 163% year-to-date, surpassing the overall gaming sector index growth [1][2]. Group 1: Company Performance - ST Huatuo's market capitalization has exceeded 100 billion yuan, indicating its strong position in the gaming industry [1]. - The company has shown consistent growth, with a projected net profit of 2.4 billion to 3 billion yuan for the first half of the year, representing a year-on-year increase of 107.20% to 159% [2]. - The dynamic price-to-earnings ratio of ST Huatuo stands at 18.67 times, making it one of the most undervalued companies in the gaming sector [2][3]. Group 2: Key Growth Drivers - ST Huatuo holds three key advantages: Didi Interactive, Shengqu Games, and its promising computing power business, which contribute to its ongoing value reassessment [5][10]. - Didi Interactive is recognized as a "global hit maker," with expected revenues of approximately 15 billion yuan in 2024, accounting for nearly 70% of the group's total revenue [6][7]. - Shengqu Games has a rich history of nearly 25 years in game development and operation, having launched numerous successful titles that continue to perform well in the market [8][9]. Group 3: Market Position and Future Outlook - The classic IPs owned by Shengqu Games, such as "Legend" and "Dragon Nest," have a large fan base and significant potential for further development, providing a stable revenue stream for ST Huatuo [9]. - The computing power business is positioned to benefit from the exponential growth in demand for AI and digital economy resources, with ongoing investments in data center projects [10]. - With the combination of high growth from Didi Interactive, a solid domestic foundation from Shengqu Games, and the expansive potential of the computing power business, ST Huatuo's market value may continue to rise, attracting more investors [10].