SW-TECH(SZ:300113) KAIYUAN SECURITIES·2025-08-22 09:44Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported better-than-expected performance in Q2, driven by the high demand for PC games and growth in cloud computing and AI services [3][4] - Revenue for H1 2025 reached 1.01 billion yuan, a year-on-year increase of 25.09%, with net profit growing by 69.22% to 162 million yuan [3] - The company has adjusted its net profit forecasts for 2025-2027 to 368 million, 490 million, and 627 million yuan respectively, reflecting strong growth potential [3] Financial Performance - In H1 2025, the company achieved revenue of 1.01 billion yuan, with a net profit of 162 million yuan, and a non-recurring net profit of 140 million yuan [3] - Q2 2025 saw revenue of 432 million yuan, a year-on-year increase of 9.3%, and net profit of 88 million yuan, up 109.6% year-on-year [3] - The net profit margin improved by 3.9 percentage points year-on-year, attributed to economies of scale and a decrease in expense ratios [3] Market Trends - The domestic PC game market showed strong performance in July 2025, with a market size of 6.637 billion yuan, reflecting a 13% quarter-on-quarter increase and a 17% year-on-year increase [4] - The resurgence of PC games is expected to drive increased advertising spending by game developers in internet cafes and esports hotels, contributing to the company's revenue growth [4] Growth Drivers - The company's cloud computing services are expanding, with new products launched in gaming and healthcare sectors, indicating a potential new growth curve [5] - The participation in the ChinaJoy 2025 exhibition attracted 410,000 visitors, a 12% year-on-year increase, which may contribute significantly to Q3 revenue [5] Financial Projections - Revenue projections for 2025-2027 are set at 2.291 billion, 2.770 billion, and 3.294 billion yuan respectively, with year-on-year growth rates of 24.5%, 20.9%, and 18.9% [7] - The projected net profit for 2025-2027 is 368 million, 490 million, and 627 million yuan, with corresponding year-on-year growth rates of 46.2%, 33.1%, and 27.9% [7]