CENTURY HUATONG(SZ:002602) Ge Long Hui·2025-09-18 13:21Core Viewpoint - The article discusses the significant stock price increase of ST Huatuo, highlighting its transformation from a company facing financial scandals to a leading player in the gaming industry, driven by its subsidiary, Point Interactive, and the success of its game "Whiteout Survival" [1][17][20]. Company Overview - ST Huatuo, previously known for automotive parts manufacturing, has shifted its focus to gaming, becoming the most profitable gaming company in A-shares with projected revenues exceeding 20 billion yuan in 2024 [5][6][17]. - The company’s stock price has surged from under 4 yuan to nearly 20 yuan, marking a sixfold increase from its lowest point of 2.99 yuan in July 2024 [1][14]. Financial Performance - In 2024, ST Huatuo reported revenues of 226.2 billion yuan, a year-on-year increase of 70.27%, and a net profit of 12.13 billion yuan, up 131.51% [17]. - The gaming segment, particularly Point Interactive, has become the core of ST Huatuo's business, contributing significantly to its revenue growth [19][20]. Market Dynamics - The mini-game market in China has seen substantial growth, with revenues surpassing 398 billion yuan in 2024, indicating a strong potential for future expansion [27]. - Point Interactive's success is attributed to the rise of mini-games and the trend of game exports, with its flagship game "Whiteout Survival" generating over 1.9 billion USD in global revenue by the end of 2024 [20][21]. Future Outlook - ST Huatuo is expected to apply for the removal of its ST designation by November 2024, which could trigger a positive market reaction [18][38]. - Despite the promising growth, concerns remain regarding the company's past financial mismanagement and the potential impact of high valuations on future performance [36][40].