Core Insights - The company reported a significant increase in revenue and profit for Q3 2025, with total revenue reaching 3.368 billion yuan, a year-on-year growth of 51.84%, and net profit attributable to shareholders at 1.417 billion yuan, up 32.31% [1] - The third quarter saw a remarkable revenue of 1.706 billion yuan, representing a year-on-year increase of 115.63% and a quarter-on-quarter growth of 81.83% [1] - The strong performance is attributed to the self-developed game "Supernatural Action Group," which launched in early 2025 and gained substantial user engagement and revenue, particularly from June onwards [1] Financial Performance - Key financial metrics include a gross margin of 90.62% for the first three quarters, an increase of 1.7 percentage points year-on-year, and a net profit margin of 42.48%, down 6.1 percentage points year-on-year, with Q3 net profit margin at 37.82% [1] - The sales expense ratio for the first three quarters was 36.23%, up 4.3 percentage points year-on-year, while the management expense ratio was 4.78%, down 1.5 percentage points year-on-year, and the R&D expense ratio was 21.27%, down 2.2 percentage points year-on-year [1] - As of the end of Q3, contract liabilities reached 1.333 billion yuan, a year-on-year increase of 172% and a quarter-on-quarter increase of 50%, primarily driven by pre-recharge revenue from "Supernatural Action Group" and "Original Journey" [1] Product and Market Strategy - The company demonstrates strong long-term operational capabilities, with the old IP "Journey" series maintaining stable performance, particularly the flagship mobile game "Original Journey," which has achieved an average monthly revenue of 100 million yuan this year [2] - The new hit game "Supernatural Action Group" has shown significant profit contribution in Q3 and is in its growth phase, with potential for long-term success through continuous updates and overseas expansion [2] - Future product pipeline includes "Famous Generals Kill" (card strategy) expected to launch in early 2026 and "Five Thousand Years" (SLG) focusing on Chinese historical themes, which has undergone multiple tests this year [2] Investment Outlook - "Supernatural Action Group" is expected to be a key growth driver for the company in the medium to long term, with projected net profits of 2.272 billion yuan, 3.360 billion yuan, and 3.825 billion yuan for 2025-2027, corresponding to PE ratios of 32, 22, and 19 times respectively [3] - The company maintains a "recommended" rating based on its strong fundamentals and growth potential [3]