KAIYUAN SECURITIES·2025-05-17 10:45Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5][12] Core Views - The company achieved a revenue of 28.8 billion yuan in Q1 2025, representing a year-on-year increase of 7.36% and a quarter-on-quarter increase of 7.78%. The net profit attributable to shareholders was 10.3 billion yuan, up 34.94% year-on-year and 17.51% quarter-on-quarter [5] - The revenue from games and related value-added services was 24 billion yuan, reflecting a year-on-year growth of 12.1% and a quarter-on-quarter growth of 13.2%, primarily driven by the revenue increase from "Identity V" and contributions from new games such as "Yanyun Sixteen Sounds" and "Marvel Duel" [5] - The company maintains its earnings forecast for 2025-2027, expecting net profits of 34.2 billion, 39 billion, and 42.4 billion yuan respectively, with corresponding EPS of 10.8, 12.3, and 13.4 yuan, indicating a positive outlook for the new product cycle led by "Infinity" [5][6] Financial Summary and Valuation Metrics - For 2025, the company is projected to have a revenue of 120.974 billion yuan, with a year-on-year growth of 14.9%. The net profit is expected to be 34.23 billion yuan, reflecting a year-on-year increase of 15.3% [8] - The gross margin is forecasted to remain stable at 62.5% for 2025, with a net margin of 28.3% [8] - The price-to-earnings ratio (P/E) for 2025 is estimated at 16.2 times, decreasing to 13.1 times by 2027, indicating a favorable valuation trend [8]