Core Viewpoint - The report from Zheshang Securities highlights that NetDragon (00777) is expected to perform well in its dual business of gaming and education starting from the second half of 2025, with new game "Code MY" showing promising potential and the education segment benefiting from a market recovery [1] Group 1: Gaming Business - The new game "Code MY" is anticipated to significantly improve the existing gaming business through technological breakthroughs and expansion of the IP portfolio, which is expected to enhance user payment levels [1][3] - The company has a stable cash flow from classic IPs like "Magic Domain," which have a loyal user base, making it easier to develop new games based on these established properties [3] Group 2: Education Business - The North American education equipment market is entering a renewal cycle, which is expected to drive a recovery in the education business, aided by the company's strong market share in international markets [1][3] - AI integration in the education sector is projected to help the company turn around its performance post-public health events [1] Group 3: Live Streaming Business - The group broadcasting model is expected to exceed market expectations due to its focus on female audiences and interactive elements, which can expand the paying audience and increase payment levels [2] - The group broadcasting model has diverse monetization methods beyond traditional live streaming, including IP derivatives and idol creation, which enhance its revenue potential [2] Group 4: Financial Projections and Valuation - The company is projected to have revenues of 4.67 billion, 4.88 billion, and 5.10 billion yuan from 2025 to 2027, with year-on-year growth rates of -22.77%, 4.45%, and 4.47% respectively [4] - Net profit attributable to shareholders is expected to be 415 million, 650 million, and 725 million yuan for the same period, with growth rates of 33.52%, 56.49%, and 11.63% respectively [4] - The target market capitalization is set at 13.46 billion HKD, with a target stock price of 25.25 HKD, reflecting a "buy" rating [1]