Orient Securities·2025-11-27 13:04Investment Rating - The report maintains a "Buy" rating for the company [5] Core Insights - The company is experiencing a recovery in Blizzard games, with the evergreen game "Yanyun Sixteen Sounds" performing well both domestically and internationally. The anticipated launch of "Forgotten Sea" in 2026 is expected to drive growth. The adjusted net profit forecasts for 2025-2027 are 362 billion, 398 billion, and 450 billion CNY respectively, reflecting slight adjustments based on game performance and Q3 financial results. The target price is set at 248.49 HKD / 226.29 CNY [3][5] Financial Performance Summary - Revenue Forecasts: The company’s revenue is projected to grow from 103,468 million CNY in 2023 to 138,188 million CNY in 2027, with year-on-year growth rates of 7.23%, 1.77%, 7.77%, 8.37%, and 12.37% respectively [4] - Operating Profit: Operating profit is expected to increase from 27,709 million CNY in 2023 to 45,775 million CNY in 2027, with significant growth in 2025 at 22.22% [4] - Net Profit: The net profit attributable to the parent company is forecasted to rise from 29,417 million CNY in 2023 to 44,999 million CNY in 2027, with a notable growth of 21.98% in 2025 [4] - Earnings Per Share (EPS): EPS is projected to grow from 9.29 CNY in 2023 to 14.20 CNY in 2027 [4] - Profitability Ratios: The gross margin is expected to improve from 60.95% in 2023 to 66.19% in 2027, while the net margin is projected to increase from 28.43% to 32.56% over the same period [4] Market Performance - The company's stock price as of November 20, 2025, was 212.6 HKD, with a 52-week high of 248 HKD and a low of 125.99 HKD [5]