SANQI HUYU(SZ:002555) Shenwan Hongyuan Securities·2025-12-30 14:44Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Insights - The company has successfully navigated five industry trends over the past decade, demonstrating strong operational capabilities through strategic transformations [5][10]. - The company’s revenue and profit forecasts have been slightly adjusted, with expected revenues of 162 billion, 186 billion, and 209 billion for 2025-2027, and net profits of 32.2 billion, 35.4 billion, and 38.1 billion for the same period [6][8]. - The company is focusing on lightweight and high-quality RPG games, with recent successful launches in the mini-game sector, positioning it as a market leader [7][53]. Summary by Sections 1. Strategic Transformations - The company has undergone five significant strategic transformations since its inception, adapting to industry changes effectively [5][20]. - Key transformations include shifting to a joint agency model in 2012, integrating research and operations in 2016, leveraging short video marketing in 2019, expanding overseas in 2021, and capitalizing on the mini-game trend in 2023 [5][20][35]. 2. Financial Performance and Forecast - The company’s total revenue for 2025 is projected at 16,159 million, with a year-on-year decline of 7.3%, followed by a recovery in 2026 with a growth of 15.1% [6][8]. - The gross profit margin is expected to remain stable, with a slight increase in the coming years, reflecting improved operational efficiency [6][9]. 3. Market Position and Product Strategy - The company’s market share in the mini-game sector has grown significantly, with it being ranked first among mini-game companies in China [7][36]. - The overseas market for SLG games is evolving, with the company holding over 95% market share in this segment, indicating strong competitive positioning [7][53]. 4. Management and Operational Stability - The company boasts a stable management team with over ten years of experience, which has been crucial for its strategic execution and long-term sustainability [5][37]. - Recent adjustments in the organizational structure and operational strategies have enhanced the company’s adaptability to market changes [5][44]. 5. AI and Dividend Strategy - The company is actively integrating AI into its production and content innovation processes, enhancing its operational capabilities [7][53]. - The company has a strong dividend history, with a cumulative dividend of 11.5 billion since its listing, reflecting a commitment to returning value to shareholders [7][53].