PWRD(SZ:002624) Changjiang Securities·2025-07-18 09:14Investment Rating - The report maintains a "Buy" rating for the company [8]. Core Views - The company is expected to achieve a net profit attributable to shareholders of 480-520 million yuan for the first half of 2025, with a non-recurring net profit of 290-330 million yuan, marking a turnaround from losses [2][4]. - The second quarter of 2025 is projected to yield a net profit of approximately 200 million yuan, with a non-recurring net profit of about 150 million yuan [2][4]. - The stable performance of existing games like "Zhu Xian World" and the growth trend in esports revenue are contributing to the company's profitability in Q2 [5]. - The second test of the new game "Yihuan" has progressed smoothly, and the overseas performance of "Persona: Nightshade" has been impressive, indicating positive developments in new game launches [5]. Summary by Sections Financial Performance - The company reported a net profit of approximately 210 million yuan and a non-recurring net profit of about 180 million yuan in Q2 2025, showing a quarter-on-quarter increase from 160 million yuan in Q1 [5]. - The esports business continues to grow, with revenue trends showing year-on-year increases [5]. Game Development - "Yihuan," an open-world RPG, has completed its second domestic test with significant improvements and positive market feedback, with expectations for further testing within the year [7]. - The new version of "Zhu Xian World" launched on July 9, 2025, is anticipated to drive revenue growth [7]. - The MMORPG sequel "Zhu Xian 2" is scheduled for public testing on August 7, 2025, reinforcing the company's position in this game genre [7]. Profit Forecast and Investment Suggestions - The company is projected to achieve net profits of 740 million yuan and 1.46 billion yuan for 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 37.9 times and 19.3 times [7].