智通财经网·2025-09-09 11:56Core Viewpoint - The report from浦银国际 indicates a revision of NetDragon's revenue forecasts for FY25E and FY26E to RMB 4.8 billion and RMB 5.0 billion respectively, maintaining a target price of HKD 13, corresponding to a FY26E P/E of 10x, highlighting the company's financial stability and potential for attractive returns through dividend distribution [1] Group 1: Financial Performance - The company experienced revenue fluctuations in the first half of the year, primarily due to adjustments in the gaming business and weakness in the education sector, with an adjusted net profit of RMB 280 million [2] - The company announced an interim dividend of HKD 0.5 per share and plans to distribute no less than HKD 600 million over the next 12 months, indicating a return rate of approximately 10% [1][2] Group 2: Gaming Business Outlook - The gaming business is expected to stabilize in the second half of the year, with first half revenue from gaming and application services at RMB 1.7 billion, and a reduced quarter-on-quarter decline of approximately 2% in gaming revenue [2] - The company is enhancing player experience, leading to growth in user numbers and activity levels, with an operating profit margin recovering to 28.8%, nearing historical norms [2] - Upcoming product launches include "Code MY" in small-scale testing, with plans for multiple overseas market expansions for "Magic Domain" and "Code Alpha" in the second half, and a mobile game "Mecha Battle" expected to launch next year [2] Group 3: Education Business Outlook - The education business is projected to approach break-even in EBITDA by the fourth quarter, with first half revenue from Mynd.ai at RMB 640 million [3] - The company is implementing cost optimization measures to mitigate the impact of a sluggish education technology market, while exploring emerging markets to counteract declines in the US and European markets [3] - Signs of recovery are noted in the European market, and with stable tariffs in the US, school procurement budgets are expected to rebound [3]