PWRD(SZ:002624) KAIYUAN SECURITIES·2025-08-27 03:02Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3][10] Core Views - The company reported a significant increase in mid-year performance, with H1 2025 revenue reaching 3.691 billion yuan, a year-on-year increase of 33.74%, and a net profit of 503 million yuan, up 384.52% year-on-year [3][4] - The growth is primarily driven by the new game "Zhu Xian World" and the continued growth of the esports business, alongside cost reduction and efficiency improvement measures [3][4] - The company has adjusted its profit forecasts for 2025-2027 to 1.012 billion, 1.993 billion, and 2.301 billion yuan respectively, reflecting optimism about the new product cycle [3][4] Financial Performance Summary - H1 2025 revenue: 3.691 billion yuan (up 33.74% YoY) - H1 2025 net profit: 503 million yuan (up 384.52% YoY) - Q2 2025 revenue: 1.668 billion yuan (up 16.57% YoY) - Q2 2025 net profit: 201 million yuan (up 236.65% YoY) - H1 2025 gross margin: 57% (down 8 percentage points) due to increased low-margin film business revenue [3][4][5] Game Performance and New Releases - The PC online game revenue for H1 2025 was 1.852 billion yuan (up 70.51% YoY), while mobile game revenue was 968 million yuan (down 33.04% YoY) [4] - The new game "Yuan Huan" has received positive feedback from both domestic and overseas players, indicating potential for significant revenue contribution [4] Film and Television Business - The film and television business revenue for H1 2025 was 767 million yuan (up 756% YoY), with a net profit of 22.93 million yuan, marking a turnaround from losses [4] - The company is focusing on high-quality, customized dramas and has seen success with short dramas, which are expected to continue to perform well [4]