CENTURY HUATONG(SZ:002602) Tai Mei Ti A P P·2025-08-25 10:37Core Insights - The article discusses the historical significance of Shengda Network and its transformation into Shengqu Games, highlighting the emotional connection of the "Sheng Warriors" to the company's legacy and their aspirations for its future [1][4][6]. Group 1: Company History and Transformation - Shengda Network, founded by Chen Tianqiao, acquired the rights to the game "The Legend of Mir 2" in 2001, which significantly changed the company's trajectory and reshaped entertainment for Chinese youth [2][4]. - The success of games like "Bubble Hall" and "Adventure Island" led to Shengda's IPO on NASDAQ in 2004, establishing it as a major player in the gaming industry [4][6]. - The rebranding of Shengda Games to Shengqu Games in 2019 marked a formal separation from Shengda Network, although it retained significant brand value and user base [5][6]. Group 2: Leadership and Vision - Peng Cheng's return as CEO of Shengqu Games in 2024 is seen as a symbolic "Sheng Warrior return," aiming to revive the company's former glory and complete unfinished business [1][6]. - Peng Cheng emphasizes the need for a cultural and strategic shift within the company, focusing on innovation and revitalizing old IPs to drive growth [6][24]. Group 3: Financial Performance - Century Huatong's mid-year performance forecast indicates a revenue increase of approximately 83% to around 17 billion yuan, with a projected net profit growth of 107% to 159% [6][24]. - Shengqu Games has maintained a positive growth trajectory by refining gameplay and content, successfully rejuvenating the popularity and commercial value of its legacy IPs [6][24]. Group 4: Challenges and Strategies - The company faces challenges such as an aging workforce and the need for talent rejuvenation, with plans to lower the average age of employees while retaining experienced staff [18][19]. - Peng Cheng's strategy includes consolidating operations and focusing on core competencies, particularly leveraging existing IPs before exploring new product lines [24][25]. Group 5: Market Trends and Future Outlook - The gaming industry is evolving, with a focus on "evergreen games" and the challenge of reviving classic IPs while appealing to modern players [28][29]. - The company aims to balance nostalgia with contemporary gaming preferences, ensuring that new versions of classic games resonate with both old and new audiences [28][29].