Core Viewpoint - MiniMax has priced its Hong Kong IPO at the high end of the guidance range, becoming one of the first Chinese AI unicorns to enter the capital market following the ChatGPT trend [1] Group 1: IPO Details - MiniMax will issue 29.2 million shares at a price of HKD 165 per share, raising approximately HKD 48.2 billion (around USD 6.19 billion) [1] - The IPO attracted 14 cornerstone investors, including major international asset management firms such as Aspex, Eastspring, and Mirae Asset, with total subscriptions amounting to approximately HKD 27.23 billion [1][2] - The final pricing at HKD 165 reflects strong market demand, with the estimated valuation ranging between HKD 461.23 billion and HKD 503.99 billion [2] Group 2: Business Growth and Globalization - MiniMax has demonstrated rapid growth and effective global expansion, with over 212 million personal users across more than 200 countries and regions as of September 2025 [3] - The company reported a revenue growth of over 170% year-on-year for the first nine months of 2025, with over 70% of revenue coming from international markets [3] - Since its establishment in early 2022, MiniMax has invested approximately USD 500 million to develop a comprehensive multimodal model, launching AI-native products such as Hai Luo AI, Xing Ye, and Talkie [3] Group 3: Market Context - MiniMax's IPO marks the beginning of a busy period for the Hong Kong IPO market, with around 11 companies planning to list this month, potentially raising a total of USD 4.1 billion [3] - The company is set to list alongside its main competitor, Zhiyu [3]

Core Viewpoint - The gaming sector in the A-share market has quietly risen, with an overall increase of over 60% expected by 2025, amidst a focus on precious metals, AI, and computing power concepts in the past year [2][3]. Group 1: Industry Growth and Policy Support - The gaming industry has seen significant growth, with the number of approved games reaching a historical high of 1,771 in 2025, a 25.07% increase from 1,416 in 2024 [5]. - The revival of game approvals is attributed to a combination of factors, including the gradual relaxation of policies and improved social attitudes towards the industry [7]. - In April 2025, the government introduced three measures to support game development, including tax incentives and support for IPOs and mergers [8]. - The approval process for game licenses has been optimized, reducing the time to under a year, with some approvals taking as little as three months [9]. Group 2: Investment in Game Development - Leading gaming companies have significantly increased their R&D expenditures, with Century Huatong, Giant Network, and G-bits reporting R&D costs of 76 million, 34 million, and 28 million yuan respectively, all showing over 45% growth year-on-year [11]. - The gaming user base has grown by 1.35% to 683 million, marking a historical high, indicating increased user engagement and spending [14]. - The domestic console game market has seen a sales revenue of 8.362 billion yuan in 2025, reflecting an 86.33% year-on-year growth [15]. Group 3: Market Trends and Future Directions - The gaming industry is experiencing a shift towards high-quality games, with a notable increase in the success rate of projects among leading companies [20]. - The variety of game genres is expanding, with new trends emerging, such as the rise of party games and the anticipated popularity of auto-chess games in 2026 [24]. - The mini-game market on WeChat has rapidly grown, with revenues reaching 53.535 billion yuan in 2025, a 34.39% increase, and a significant rise in active users [25]. - The gaming market is expected to continue expanding, driven by improved game quality, the growth of mini-games, and the integration of AI in game development and operations [29]. Group 4: Competitive Landscape - The gaming industry is becoming increasingly competitive, with companies investing in mergers and expanding into international markets to address challenges [33]. - While most companies focus on the domestic market, there is a growing emphasis on global expansion, leading to a significant increase in R&D investments [34]. - The industry's future growth will likely depend on companies that can innovate gameplay and develop platform-based gaming enterprises [36].

Investment Rating - The report assigns a "Buy" rating for Century Huatong (002602.SZ) for the first time [1]. Core Insights - Century Huatong has transformed from an automotive parts manufacturer to a leading player in the internet gaming sector, achieving record-high performance in 2025 with revenue of 27.22 billion yuan, a year-on-year increase of 75.30% [6][19]. - The company's net profit for the first three quarters of 2025 reached 4.36 billion yuan, reflecting a 142% increase compared to the same period in 2024, indicating improved profitability efficiency [6][19]. - The revenue structure has shifted significantly, with mobile games accounting for 84.7% of total revenue in the first half of 2025, and overseas revenue surpassing domestic revenue for the first time, reaching 52.06% [6][27]. Financial Performance Summary - Revenue (in million yuan): - 2023A: 13,285 - 2024A: 22,620 - 2025E: 38,204 - 2026E: 48,799 - 2027E: 53,679 - Year-on-year growth rates: - 2023A: 16% - 2024A: 70% - 2025E: 69% - 2026E: 28% - 2027E: 10% [1] - Net profit (in million yuan): - 2023A: 524 - 2024A: 1,213 - 2025E: 5,721 - 2026E: 7,988 - 2027E: 9,755 - Year-on-year growth rates: - 2023A: 108% - 2024A: 132% - 2025E: 372% - 2026E: 40% - 2027E: 22% [1] Business Development - Century Huatong has undergone three phases of evolution, transitioning from automotive parts to internet gaming, and has successfully lifted risk warnings, marking a new development stage [12][14]. - The subsidiary, Diandian Interactive, has become a core growth engine, with revenue increasing from 3.74 billion yuan in 2022 to 14.96 billion yuan in 2024, and accounting for 76% of the group's total revenue in the first half of 2025 [6][70]. - The company has consistently launched successful new products, with titles like "Endless Winter" and "Kingshot" achieving significant market recognition and revenue [6][73]. Market Trends - The Chinese gaming market is recovering, with total sales revenue expected to reach 350.79 billion yuan in 2025, reflecting a year-on-year growth of 7.68% [28]. - The user base for gaming in China is projected to reach 683 million by 2025, providing a solid foundation for revenue growth [29]. - The mobile gaming segment dominates the market, accounting for 73.29% of total revenue, while client games follow with a 22.28% share [31].

Core Viewpoint - The gaming sector in the A-share market has seen a significant rise, with an overall increase of over 60% in 2025, driven by policy support and market recovery [1][2]. Group 1: Market Performance - In 2025, several gaming companies such as Ice Glacier Network, Xunyou Technology, and Gigabit saw their stock prices double, while Century Huatong and Giant Network experienced nearly 300% growth [2]. - The total number of approved games reached 1,771 in 2025, a 25.07% increase from 1,416 in 2024, marking a historical high since the implementation of new regulations in 2018 [2][4]. Group 2: Policy Support - The revival of game approvals is attributed to a combination of factors, including relaxed policies and improved social attitudes towards the gaming industry [4]. - In April 2025, the government introduced three measures to support game development, including tax incentives and support for IPOs and mergers [5]. - The approval process for game licenses has been optimized, reducing the time to under a year, with some approvals taking as little as three months [6]. Group 3: Industry Trends - The gaming industry is witnessing a trend towards high-quality games, with leading companies significantly increasing their R&D expenditures. For instance, Century Huatong, Giant Network, and Gigabit reported R&D expenses of 76 million, 34 million, and 28 million yuan respectively, with growth rates exceeding 45% [7]. - The domestic gaming market's actual sales revenue reached 350.79 billion yuan in 2025, reflecting a year-on-year growth of 7.68% [7]. - The user base grew by 1.35% to 683 million, indicating a historical peak, with increased user engagement and spending [10]. Group 4: Future Outlook - The gaming industry is expected to continue its upward trajectory, with a focus on innovative game types and the integration of AI in development and operations [20]. - The mobile gaming market is also expanding, with the mini-program gaming market revenue reaching 53.54 billion yuan in 2025, a significant increase of 34.39% [20]. - The competitive landscape is intensifying, prompting companies to invest in mergers and global market expansion, while maintaining a focus on domestic markets [22].

Core Viewpoint - The gaming sector in the A-share market has seen a significant rise, with an overall increase of over 60% in 2025, driven by favorable policies and market conditions [1] Group 1: Market Recovery and Growth - The number of approved domestic online games reached a historical high of 1,771 in 2025, a 25.07% increase from 1,416 in 2024 [2] - The recovery in game approvals is attributed to a combination of factors, including improved policies and social attitudes towards the gaming industry [4][5] - In April 2025, the government introduced three measures to support the gaming industry, including tax incentives and support for IPOs and mergers [6] - The approval process for game licenses has been optimized, reducing the time to under a year, with some approvals taking as little as three months [8] - Negative impacts from past regulations, such as restrictions on minors and license suspensions, are gradually dissipating [9] Group 2: Industry Investment and Revenue - Leading gaming companies have significantly increased their R&D expenditures, with Century Huatong, Giant Network, and G-bits spending 760 million, 340 million, and 280 million yuan respectively, all showing over 45% growth year-on-year [11] - The actual sales revenue of the domestic gaming market reached 350.79 billion yuan in 2025, reflecting a year-on-year growth of 7.68% [13] - The user base grew by 1.35% to 683 million, marking a historical peak [16] - The gaming industry is experiencing a surge in user engagement and spending, with the overall revenue growth for the industry’s stocks showing increases of 22%, 22%, and 29% in the first three quarters of the year [23] Group 3: Evolving Game Genres and Trends - The gaming industry is witnessing a rapid evolution in game genres, with a notable rise in party games and FPS titles since 2022 [30][32] - The success of games like "Genshin Impact" has set a precedent for future game releases, indicating a trend towards innovative and hybrid game types [35] - WeChat mini-games have emerged as a significant growth area, with market revenue reaching 53.54 billion yuan in 2025, a 34.39% increase [39] - The monthly active users of WeChat mini-games reached 500 million, with daily online time increasing by 10% [40] Group 4: Future Outlook and Competitive Landscape - The gaming market is expected to continue expanding, driven by the rise of high-quality mobile games and the integration of AI in game development and operations [46][47] - Despite the positive outlook, competition within the gaming industry is intensifying, prompting companies to pursue mergers and global market expansion [50][51] - The most promising companies are those that can innovate gameplay and develop platform-based gaming experiences, which may lead to growth and valuation increases [55] - The darkest times for the gaming industry appear to be over, signaling a potential turning point for sustained growth [56]

Core Insights - Sensor Tower data indicates that the mobile game "Whiteout Survival" by DianDian Interactive has successfully launched a Christmas-themed event, significantly boosting global player spending and securing its position as the top-grossing mobile game for overseas markets, with projected total revenue exceeding $4 billion by December 2025 [1] Group 1: Game Performance and Revenue - "Gossip Harbor" by Lemon Microfun saw a 7% increase in revenue this month, reaching a historical high and ranking second in overseas mobile game revenue [1] - "Call of Duty Mobile" experienced a 36% month-over-month revenue increase due to extensive updates, including a sixth anniversary celebration and new game modes, ranking fifth in revenue [2] - "Genshin Impact" achieved a 47% increase in overseas revenue with the launch of the new version "Moon's Three," climbing five spots to ninth in revenue rankings [2] - "Where Winds Meet," an international version of NetEase's martial arts open-world game, debuted in the overseas market, ranking 27th in overseas mobile game revenue in its first month [3] - "Love and Deep Space" by Die Paper Network saw a 38% increase in overseas revenue, ranking tenth in revenue and fifth in growth, with total overseas revenue surpassing $400 million [4] - "Zero Zone" by miHoYo experienced a 56% increase in overseas revenue, achieving its highest daily revenue since launch and topping various market charts [4] - "Nobunaga's Ambition: True War" launched in Japan, resulting in a 207% increase in overseas revenue, ranking eighth in growth [4] Group 2: Download Rankings - "Block Blast!" by Hungry Studio topped the overseas mobile game download chart with an 11% increase in downloads [6] - "Vita Mahjong" by Vita Studio ranked second in downloads, with over 170 million downloads since its launch in December 2023 [6] - "Mobile Legends: Bang Bang" by Mouton Technology saw an 8% increase in downloads, securing the third position in the download rankings [7]

Group 1 - Suplay submitted its listing application to the Hong Kong Stock Exchange on January 1, 2026, with CICC and JPMorgan as joint sponsors [1] - The company, founded in 2019, has its flagship brand "Kakawoo" targeting high-end collectible cards for adults, with retail prices ranging from 59.9 to 89.9 yuan per pack [1] - Suplay ranked first in China's collectible non-combat card market based on the total gross merchandise value (GMV) for 2024, according to Frost & Sullivan [1] Group 2 - Revenue for Suplay is projected to grow from 146 million yuan in 2023 to 281 million yuan in 2024, representing a year-on-year increase of 92.5% [1] - By the first three quarters of 2025, the company's revenue reached 283 million yuan, surpassing the total for 2024 [1] - Adjusted net profits for the same periods were 15.97 million yuan, 64.81 million yuan, and 86.42 million yuan respectively [1] Group 3 - Suplay acknowledged a risk of dependency on several licensed IPs, with revenue from proprietary IP products dropping from 40.6% in 2023 to 4.1% in the first three quarters of 2025 [2] - The contribution of the top five licensed IPs to revenue increased from 47.8% to 77.7% during the same period [2] - The largest revenue-generating IP's licensing agreement has expired, and the company is currently negotiating potential collaborations [2] Group 4 - The Chinese pan-entertainment card market is projected to exceed 30 billion yuan in 2025 and is expected to reach 50 billion yuan by 2027 [2]

Core Viewpoint - Suplay, known for its flagship brand "Kakawoo," is seeking to list on the Hong Kong Stock Exchange, leveraging its position as a leader in China's collectible non-combat card market, with a market share exceeding that of its closest competitors combined [1] Group 1: Company Overview - Suplay was established in 2019 and initially functioned as a second-hand trading platform for trendy toys, evolving into a new consumer segment amidst the rise of the "Gouzi economy" [1] - Kakawoo has become the only Chinese brand among the top five global competitors in the collectible card market, with a projected GMV for 2024 placing it at the forefront of the industry in China [1] Group 2: Financial Performance - The company has attracted over 1.3 million registered members, with over 99% of consumers being adults [2] - Suplay's revenue for the first nine months of 2025 reached 283 million yuan, with an adjusted net profit margin of 30.5% during the same period, indicating significant improvement in profitability [2] Group 3: Risks and Challenges - Suplay's revenue heavily relies on external licensed IPs, with the share of income from these sources rising from 47.8% in 2023 to 77.7% in the first three quarters of 2025, while revenue from its own IPs plummeted from 40.6% to 4.1% [3] - The company faces challenges due to the non-exclusive nature of many IP agreements, with a major revenue-generating IP agreement already expired, creating uncertainty around future renewals [3] - Suplay's reliance on distributor channels rather than a direct-to-consumer model limits its control over pricing and market dynamics, while increasing operational pressures as inventory write-downs have reached 36.3 million yuan [3] Group 4: Strategic Partnerships - Major shareholder miHoYo plays a crucial role in Suplay's operations, having invested $8 million in 2021 and holding approximately 11.86% of the company [4] - The partnership allows Suplay to access top-tier IPs from miHoYo, enhancing its product offerings and market potential, as evidenced by the successful collaboration on the "Ruan·Mei Creation" mini figurine, which achieved a GMV of over 50 million yuan in 2024 [4] Group 5: Future Plans - Suplay aims to upgrade its business model by establishing design centers in Tokyo and Los Angeles, transitioning from collectible cards to trading card games (TCG) with longer lifecycles [4] - The company plans to explore new products that integrate online game data with physical merchandise, leveraging miHoYo's resources to create sustainable cultural assets in the evolving trend economy [4]

Core Insights - MiHoYo has recently gained attention in the capital market with three companies it invested in filing for IPOs on the Hong Kong Stock Exchange [1][31] - The companies include Soulgate, MiniMax, and Suplay, showcasing MiHoYo's diverse investment portfolio across various sectors [31] Investment Overview - MiHoYo has directly invested in 30 companies, covering areas such as animation production, art, voice acting, distribution, artificial intelligence, fusion energy, and commercial aerospace [31][32] - The investment strategy prior to 2021 focused on enhancing its gaming ecosystem, while post-2021 investments have shifted towards high-tech sectors [19][51] Specific Investments - Notable investments include: - Soulgate, a social app, where MiHoYo is the second-largest institutional shareholder [31] - MiniMax, an AI company, which plans to go public on January 9, 2026, with MiHoYo as a significant investor [31] - Suplay, which has been authorized to develop merchandise based on MiHoYo's IPs, including products that have generated over 50 million RMB in GMV [17][31] Historical Context - MiHoYo's investment in companies like MiHuaShi (art outsourcing) and WuLiFang (animation production) has provided substantial support for its game titles, demonstrating a high utilization rate of these investments [35][38] - The company has also invested in various IP derivative products, such as those from Apex-Toys and AiMan Animation, which have expanded its merchandise offerings [44][48] Shift in Investment Strategy - Starting in 2021, MiHoYo's investment direction broadened significantly, focusing on cutting-edge technologies like brain-computer interfaces and fusion energy [19][54] - Collaborations with institutions like Shanghai Jiao Tong University for research on brain-machine interfaces highlight this strategic pivot [51][54] Future Prospects - MiHoYo's investments in AI and XR technologies, such as MiniMax and WanYouYingLi, suggest a forward-looking approach aimed at integrating advanced technologies into its gaming and content production processes [24][59][62] - The company's vision includes creating a virtual world that a billion people would want to inhabit by 2030, indicating ambitious long-term goals [62]

Core Viewpoint - MiniMax is set to IPO on January 9, with miHoYo as an early investor holding 7.34% of shares, showcasing its strategic investment in AI technology [4][9]. - Suplay, another company backed by miHoYo, has also submitted its IPO application, with miHoYo holding 11.86% [4][10]. Group 1: Investment Strategy - miHoYo has been actively investing in various companies since 2018, leveraging its cash flow from successful games to explore new technologies and industries [5][13]. - The company has made significant investments in AI and metaverse technologies, aiming to reduce costs and enhance its gaming products through partnerships with firms like MiniMax [9][11]. - miHoYo's investment in Suplay aligns with its strategy to expand its IP derivative product offerings and reach younger consumer demographics [11][12]. Group 2: Company Background and Growth - miHoYo was founded in 2011 by three individuals, starting with a small loan and facing early financial challenges before achieving significant success with its games [13][14]. - The company has evolved into a prominent player in the VC space, making numerous investments across various sectors, including cutting-edge technologies like brain-computer interfaces [15][17]. - miHoYo's investment philosophy is characterized by a willingness to support young, innovative founders who share a vision of technological advancement [17][18]. Group 3: Future Prospects - The company is focusing on enhancing its AI capabilities, with its self-developed model reportedly improving development efficiency by over 30% [19]. - miHoYo's leadership transition, with Liu Wei taking over as chairman, indicates a strategic shift towards further technological research and development [18][19]. - The competitive landscape emphasizes the importance of attracting top talent in the AI sector, which is crucial for future growth and innovation [19].