Investment Rating - The report maintains an investment rating of "Buy" for the company [1][5]. Core Views - The company's Q2 performance shows a quarter-on-quarter improvement, with core games stabilizing after entering a mature phase, leading to a year-on-year revenue decline [1][2]. - The company is optimistic about the future potential of its new SLG games and its long-term operational capabilities, as well as the progress in AI and cloud business product implementations [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 2.685 billion RMB, a year-on-year decrease of 12.05%, and a net profit attributable to shareholders of 509 million RMB, down 19.26% year-on-year [1]. - Q2 revenue was 1.361 billion RMB, down 12.99% year-on-year but up 2.85% quarter-on-quarter, with a net profit of 271 million RMB, reflecting a year-on-year decline of 19.40% but a quarter-on-quarter increase of 13.45% [1][4]. Game Portfolio - The company's core games, "Age of Origins" and "War and Order," have been operational for over six years, each generating over 1 billion USD in cumulative revenue [2]. - New games "Stellar Sanctuary" and "Next Agers" are expected to drive revenue growth, with the former being a sci-fi simulation and SLG game, and the latter combining various gameplay elements [2]. AI and Cloud Business - The company has launched the AI application avavox, which can generate voice responses in 30 seconds and is designed for various business scenarios [3]. - The cloud business is expanding with new enterprise-level products and solutions, aiming to enhance the company's integrated "cloud + AI" capabilities [3]. Profitability and Cost Management - The gross margin for H1 2025 was 59.83%, a decrease of 2.48 percentage points, primarily due to a higher proportion of lower-margin AI/ICT operations [4]. - The sales expense ratio improved to 14.56%, down 3.46 percentage points, attributed to reduced advertising and promotion costs [4]. Earnings Forecast and Valuation - The company forecasts net profits of 1.15 billion RMB, 1.71 billion RMB, and 2.02 billion RMB for 2025, 2026, and 2027, respectively, with corresponding EPS of 0.59 RMB, 0.87 RMB, and 1.03 RMB [5]. - The target price has been adjusted to 20.01 RMB, reflecting a 23x PE valuation for 2026, up from a previous target of 19.13 RMB [5].
神州泰岳(300002):Q2业绩环比改善,老游戏趋稳