Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative performance increase of over 15% compared to the benchmark index within the next 6 to 12 months [3][11]. Core Insights - The company reported a total revenue of 2.518 billion yuan for the first half of 2025, representing a year-on-year growth of 28.49%. The net profit attributable to shareholders was 645 million yuan, up 24.5% year-on-year, with a net cash flow from operating activities of 1.077 billion yuan, reflecting an 81.18% increase [4]. - The company plans to distribute a cash dividend of 66 yuan per 10 shares, totaling 474 million yuan, which accounts for 73.46% of the half-year net profit [4]. - The gross margin significantly improved to 92.31% in the first half of 2025, up from 88.22% in the same period last year, driven by better margins in self-operated and joint-operated businesses [7]. Financial Performance Summary - Revenue and Profit Forecast: - 2023A: Revenue of 4.185 billion yuan, net profit of 1.125 billion yuan - 2024A: Revenue of 3.696 billion yuan, net profit of 945 million yuan - 2025E: Revenue of 5.227 billion yuan, net profit of 1.593 billion yuan - 2026E: Revenue of 6.795 billion yuan, net profit of 1.881 billion yuan - 2027E: Revenue of 7.338 billion yuan, net profit of 2.011 billion yuan [3][10]. - The company expects a revenue growth rate of 41% in 2025, followed by 30% in 2026 and 8% in 2027 [7]. Product Performance - The company launched two self-developed games in the first half of 2025, which performed exceptionally well. "Wanjian Changsheng" generated 566 million yuan in revenue, while "Zhangjian Chuanqi" reached 424 million yuan within a month of its launch [6]. - Existing products showed mixed results, with "Wandao Mobile" generating 1.071 billion yuan, down 7.25% year-on-year, and "Wandao" online game revenue at 159 million yuan, down 11.55% year-on-year [6].