Ge Long Hui·2025-10-23 19:35Core Insights - The company is expected to report a 28% year-on-year increase in Non-GAAP net profit to 9.6 billion yuan for Q3 2025, with revenue projected to grow by 14% to 23.9 billion yuan, aligning with Bloomberg consensus estimates [1][2] Group 1: Q3 2025 Performance Expectations - The flagship product "Fa Xin Ya" and new games are showing strong performance, with online game service revenue expected to increase by 15% in Q3 2025 [1] - The desktop version of "Dream of the Red Chamber" has seen record high online users, surpassing 3.15 million on September 7 [1] - The mobile version of "Dream of the Red Chamber" launched a new service at the end of August, contributing to user engagement [1] Group 2: New Product Cycle and Future Focus - The company is set to focus on key products in 2026, including the multi-platform RPG "Forgotten Sea," which began its first round of testing at the end of June [2] - The open-world game "Infinite" was showcased at the Tokyo Game Show, highlighting innovations in traditional gaming frameworks and user interaction [2] - The life simulation party game "Starry Sky" received its license in September and is expected to begin testing within the year [2] Group 3: Profit Forecast and Valuation - The company has raised its Non-GAAP net profit forecasts for 2025 and 2026 by 2% and 3% to 39.3 billion yuan and 41.5 billion yuan, respectively [2] - Current stock prices correspond to a P/E ratio of 17x for 2025 and 16x for 2026, with target prices increased by 5% to 275 HKD and 177 USD, indicating an upside potential of 20% and 22% for HK and US stocks [2]