CENTURY HUATONG(SZ:002602) Shenwan Hongyuan Securities·2026-01-07 00:12Core Insights - The report highlights Century Huatong's (002602) strategic acquisitions and its position as the largest gaming company in A-shares, driven by successful IP operations and the growth of its SLG (Simulation Game) segment [11] - The projected net profits for Century Huatong from 2025 to 2027 are expected to be 5.4 billion, 8.2 billion, and 10.1 billion CNY, reflecting significant growth rates of 345%, 52%, and 23% respectively [11] - A relative valuation method assigns a target market value of 172.2 billion CNY for Century Huatong in 2026, with a "Buy" rating recommended [11] Company Analysis - Century Huatong has successfully integrated acquisitions of companies like Seven Cool, Tianyou, and Point Interactive, enhancing its revenue scale and market presence [11] - The report emphasizes the potential of Point Interactive's SLG and casual gaming segments, which are expected to drive future growth [11] - The success of Point Interactive is attributed to its innovative product development and effective user acquisition strategies, positioning it as a leader in the SLG 3.0 phase [11] Industry Insights - The report discusses the broader gaming industry trends, particularly the growth of casual gaming in Western markets, which is expected to create new revenue streams for companies like Century Huatong [11] - The gaming market is projected to see significant expansion, with the SLG market alone expected to reach approximately 8 billion USD by 2024, predominantly driven by Chinese game developers [11] - The report identifies key trends in the gaming industry, including the evolution of game mechanics and user engagement strategies that enhance monetization and user retention [11]