CENTURY HUATONG(SZ:002602) Xin Lang Cai Jing·2025-12-23 12:09Core Insights - The report highlights the significant growth of Chinese self-developed games in overseas markets, with Century Games being a notable example of success in this sector [1][7]. Industry Overview - The global video game market is expected to exhibit characteristics of accelerated technological integration and diverse content supply by 2025 [3][10]. - Chinese game brands are increasingly applying AI technology across the entire development and operational chain, enhancing efficiency and localization [3][10]. - In the first half of 2025, actual sales revenue from Chinese self-developed games in overseas markets increased by 11.07% year-on-year, with the top 30 products generating a total of $5.8 billion [3][10]. Company Performance - Century Games, a subsidiary of Century Huatuo, has achieved over 100 million downloads for its game "Whiteout Survival," maintaining the top position in China's mobile game overseas revenue rankings for over ten months [3][10]. - The company has established itself among the top 10 global publishers, with a strategy that balances stable revenue from existing products and growth from new releases [3][10]. - Century Games has integrated AI deeply into its operations, significantly improving production efficiency in art asset creation by 60% to 80% [5][12]. Competitive Position - Century Huatuo's competitive advantage lies in its data-driven methodology, which includes low-cost experimentation, large-scale promotion, rapid iteration, and strong collaborative efforts [5][12]. - Despite strong performance and core competencies, Century Huatuo's current valuation is below the industry average, indicating potential for recovery [6][13]. - The chairman of the company identified three key reasons for the undervaluation: unrecognized valuation premiums for overseas leaders, insufficient recognition of the mobile gaming sector's importance, and overlooked scarcity of scale and growth [6][13].