Core Viewpoint - The company anticipates significant growth in both revenue and net profit for the first half of 2025, driven by strong performance from key games and improvements in profit margins [1][2]. Group 1: Financial Performance - The company expects 1H25 revenue to be no less than 3.05 billion yuan, representing a year-on-year increase of over 37% [1]. - Net profit for 1H25 is projected to be no less than 790 million yuan, reflecting a year-on-year increase of over 215% [1]. - The performance exceeds both the company's and market expectations, with the market previously estimating net profit at 500 million yuan [1]. Group 2: Game Performance and Releases - The revenue growth in 1H25 is primarily attributed to the success of games such as "Ragnarok M: Beginning," "Heart Town," and "Torchlight," which have driven revenue increases and improved gross margins [1]. - In 2H25, profit growth is expected to come from the anniversary celebration of "Heart Town," which is anticipated to enhance commercialization, and the upcoming release of "Iser" on September 25 [1]. - The company has a strong pipeline for 2026, with the first round of testing for the open-world MMORPG "Ragnarok RO: Eternal Love" set to begin in December 2025 [1]. Group 3: TapTap Platform Development - TapTap's revenue and profit showed steady growth in 1H25, driven by improvements in advertising algorithms and increased user engagement [2]. - The company plans to focus on significant updates for games and the development of a PC version of TapTap, which has already gained a user base [2]. - Future initiatives include enhancing the small game platform and utilizing AI for game development [2]. Group 4: Profit Forecast and Valuation - The company has raised its net profit forecasts for 2025 and 2026 by 66% and 81% respectively, now expecting 1.65 billion yuan and 1.95 billion yuan [2]. - The target price has been increased by 49% to 82.5 HKD, reflecting an upward potential of 45% based on the adjusted profit forecasts and new game expectations [2].

Core Viewpoint - The report from CICC indicates an upward revision of the net profit forecast for Xindong Company (02400) for 2025 and 2026 by 66% and 81% to 1.65 billion and 1.95 billion yuan respectively, reflecting a strong performance from TapTap and better-than-expected game results [1] Group 1: Financial Performance - The company forecasts a revenue of no less than 3.05 billion yuan for the first half of 2025, representing a year-on-year increase of over 37% [1] - The net profit for the same period is expected to be no less than 790 million yuan, showing a year-on-year increase of over 215% [1] - The performance is better than both the company's and market's expectations, with a previous net profit estimate of 500 million yuan [1] Group 2: Game Performance and Releases - The revenue growth in the first half of 2025 is primarily driven by the games "Ragnarok M: Beginning" and "Heart Town," along with "Torchlight" improving gross margin levels [1] - For the second half of 2025, profit growth is expected from the anniversary celebration of "Heart Town" and the launch of "Iser" [2] - The core product "Ragnarok RO: Eternal Love" is set for its first round of testing in December 2025, with a pre-release already launched on TapTap [2] Group 3: TapTap Platform Development - TapTap has shown steady revenue growth in the first half of 2025, driven by improvements in advertising algorithms and increased user engagement [3] - The company aims to enhance its platform with new features and a desktop version, focusing on major game updates and user experience [3] - Future developments will include a mini-game platform and AI game creation tools [3]

Core Viewpoint - The company has raised its profit forecasts significantly for 2025 and 2026, reflecting better-than-expected performance from TapTap and game titles, leading to an upgraded target price and a maintained outperform rating [1][2]. Group 1: Profit Forecasts - The company has increased its net profit expectations for 2025 and 2026 by 66% and 81% respectively, reaching 1.65 billion and 1.95 billion yuan, corresponding to P/E ratios of 15x and 13x [1]. - The company anticipates a revenue of no less than 3.05 billion yuan for the first half of 2025, representing a year-on-year growth of over 37% [2]. - The net profit for the same period is expected to be no less than 790 million yuan, showing a year-on-year increase of over 215% [2]. Group 2: Game Performance - The solid performance in the first half of 2025 is attributed to titles such as "Ragnarok M: Beginners' Server," "Heart Town," and "Torchlight," which have driven revenue growth and improved gross margins [3]. - The second half of 2025 is expected to see profit growth from the anniversary celebration of "Heart Town" and the launch of "Iser" on September 25, with the international version performing better than market expectations [3]. Group 3: TapTap Growth - TapTap has shown steady revenue growth in the first half of 2025, driven by improvements in advertising algorithms and increased user engagement [4]. - The company plans to focus on significant updates for games and the development of a PC version of TapTap, which has already garnered a user base [4]. - Future initiatives include enhancing the TapTap mini-game platform and exploring AI-driven game development [4].