Investment Rating - The report upgrades the investment rating to "Buy" with a target price of HKD 7.05, reflecting a 12x PE for 2025 [4][3]. Core Insights - The company has shown significant growth in its social business, with cumulative downloads reaching approximately 780 million, a 5.7% increase from the previous quarter. Monthly active users reached about 31.74 million, a 9.5% quarter-on-quarter growth. Total revenue from the social business is expected to be between RMB 4.52 billion and RMB 4.72 billion, representing a year-on-year growth of 54.3% to 61.1% [1]. - The innovative business segment, including e-commerce and premium games, is projected to generate revenue between RMB 440 million and RMB 480 million, with a year-on-year growth of 16.1% to 26.6%. The premium game "Alice's Dream" has contributed significantly, achieving a revenue of approximately RMB 705 million, a growth of 80.4% [2]. - The company is focusing on emerging markets, particularly in the Middle East and North Africa, where it has established a strong presence in the app rankings. The application of AI technology is expected to further enhance growth and market share [1]. Summary by Sections Social Business Performance - Cumulative downloads reached approximately 780 million, a 5.7% increase from the previous quarter [1]. - Monthly active users reached about 31.74 million, a 9.5% quarter-on-quarter growth [1]. - Total revenue from social business expected to be between RMB 4.52 billion and RMB 4.72 billion, a year-on-year growth of 54.3% to 61.1% [1]. Innovative Business Growth - Total revenue from innovative business projected to be between RMB 440 million and RMB 480 million, with a year-on-year growth of 16.1% to 26.6% [2]. - Premium game "Alice's Dream" achieved revenue of approximately RMB 705 million, an 80.4% year-on-year growth [2]. Market Expansion Strategy - The company is targeting emerging markets with significant growth potential, particularly in the Middle East and North Africa [1]. - The application of AI technology is expected to drive further growth and enhance market presence [1].
赤子城科技：事件点评：业绩盈喜，新兴市场多点开花