证券研究报告 | 公司更新 | 游戏Ⅱ 超预期点一：《Whiteout Survival》等游戏的持续性，SLG 游戏的长生命周期 市场认为：《Whiteout Survival》和《Kingshot》的高流水已分别持续了一年和半 年，流水已达峰，后期流水应呈逐步下降趋势，难以持续。 依据：根据过往经验，新游上线前期是玩家充值意愿较高的时期，后期随着游戏 内容的消耗和竞品的推出，流水或逐步递减，导致其营收和利润贡献逐步衰弱。 我们认为：《Whiteout Survival》流水趋稳但是下降可能性较低，《Kingshot》流水 仍处爬坡阶段，特别是国服《奔奔王国》，小程序和 App 版上线时间较短，推广 后带来的流水仍存巨大空间。 SLG+X 的全球旗手，率先跑出的 A 股龙头 ——ST 华通更新报告 投资要点 一句话逻辑：公司是一家以 SLG 和经典 IP 为主，在游戏出海上见长的游戏研发 商。公司两款"SLG+X"品类的《Whiteout Survival》和《Kingshot》头部游戏 有望在游戏生命周期和利润率上持续超预期，且目前研发经验可复用、可累计， 同时叠加《Kingshot》国服的市场增量，公司 ...

Summary of the Conference Call Company and Industry Overview - The conference call discusses Century Huatong and its subsidiary, Diandian Interactive, focusing on the SLG (Simulation and Strategy Game) market, which holds over 14% of the global market share and is expected to grow at approximately 20% year-on-year from 2024 to the first half of 2025 [2][4]. Key Points and Arguments - Diandian Interactive is a leader in the SLG gaming industry, with its flagship game "Frosty Apocalypse" generating annual revenue between 20 billion to 25 billion RMB, while another title, "Bouncing Kingdom," is projected to reach 10 million USD in overseas monthly revenue by August [2][4]. - The combined annual revenue from these two products is expected to exceed 35 billion RMB [2][4]. - The SLG gaming sector has evolved from gameplay iteration to user diversification, with user acquisition becoming a primary growth driver since 2020, despite traditional SLG games facing challenges in user acquisition and retention [2][6]. - Diandian Interactive has innovated with the "SLG+X" formula, merging simulation management with SLG elements, utilizing cartoon art styles and apocalyptic themes to reduce user acquisition costs and enhance retention [2][10]. Development Trends and Innovations - The SLG market has seen significant innovations since 2014, with key titles introducing new gameplay mechanics. However, since 2020, the industry has relied more on user acquisition innovations rather than gameplay innovation [8][9]. - Traditional SLG games have struggled with user retention due to core gameplay being less engaging initially, leading to lower early retention rates [8][9]. - The introduction of casual elements and secondary gameplay has helped some companies improve user acquisition costs, but retention remains a challenge [9]. Future Outlook - Diandian Interactive is currently in a growth phase, with expectations of sustained revenue growth and profit increases over the next 1 to 3 years [7][11]. - The company is benefiting from a favorable cycle in both product and category, with its successful titles in long-term operation, indicating potential for continued revenue growth [3][11]. - The innovative approach of combining SLG with simulation management is expected to yield further success, as evidenced by the performance of "Endless Winter" and other titles [10][11]. Additional Important Insights - The SLG market primarily attracts middle-aged males interested in historical military themes, but the introduction of more diverse gameplay and themes is broadening the user base [5][6]. - The high payment characteristics of SLG games, with monthly spending typically ranging from 600 to 800 RMB, indicate a high user value, albeit with high acquisition costs [6]. This summary encapsulates the key insights from the conference call regarding Century Huatong and the SLG gaming industry, highlighting growth opportunities, challenges, and innovative strategies.

Investment Rating - The report assigns a "Buy" rating for the company [5][72]. Core Views - The company's gaming business, led by its wholly-owned subsidiary Kemu Games, has a strong track record in overseas game publishing, with past titles like "Age of Origins" and "War and Order" generating revenues exceeding 30 billion and 10 billion respectively. Future titles such as "Stellar Sanctuary" and "Next Agers" are expected to exceed revenue expectations [1][4]. - The company is positioned in the low-performing segment of the gaming sector for 2025, with its current stock price reflecting only the expected performance of existing games and not accounting for new product lines [3][4]. - The company is projected to achieve revenues of 69.3 billion, 89.4 billion, and 99.3 billion for 2025, 2026, and 2027 respectively, with net profits of 12.9 billion, 19.6 billion, and 21.5 billion [5][72]. Summary by Sections Company Overview - The company, established in 1998 and listed in 2009, aims to be a leader in the digital economy with a focus on game development and AI technology [18][19]. - Its gaming business is a top-tier player in the domestic mobile game market, with over 250 million registered users across more than 150 countries [19]. Industry Analysis - SLG games are characterized by high entry barriers and sustained revenue generation, with a typical lifecycle of 6 to 8 years [26]. - The "SLG+X" model, which integrates various gameplay elements, has gained popularity and is expected to enhance user acquisition and retention [35]. Financial Performance - The company has shown significant revenue growth, with a peak revenue of 19.4 billion in Q4 2024 and a record net profit of 4.63 billion in Q3 2024 [23][25]. - The overall expense ratio has improved, with a notable decrease in sales expense ratio from 54.5% in Q1 2021 to 43.5% in Q1 2025 [25]. New Product Development - The upcoming titles "Stellar Sanctuary" and "Next Agers" are set to initiate a new product cycle, with "Stellar Sanctuary" expected to contribute significantly to revenue [53][66]. - The company has multiple SLG games in development, with plans for commercial testing in the near future [60]. Valuation and Market Potential - The estimated target market capitalization for 2026 is around 400 billion, based on a P/E ratio of 20 times projected earnings [4][72]. - The global SLG game market is anticipated to exceed 20 billion USD by 2027, indicating strong growth potential for the company [30].

Core Insights - The SLG (Simulation Game) genre has experienced a significant surge, with a year-on-year growth of 180%, making it one of the fastest-growing categories in the mini-game platform market [1] - Major titles like "Rate of the Land" and "Three Kingdoms: Strategy" have launched mini-game versions to tap into this emerging market, achieving high rankings in the WeChat mini-game sales charts [3][5] - The trend of integrating SLG into mini-game platforms reflects a shift towards lighter gameplay, aiming to attract a broader user base and enhance user engagement through social features [5][18] Industry Trends - The SLG products on mini-game platforms can be categorized into two types: those that blend SLG with casual gameplay (e.g., "Pocket Warrior") and traditional SLG titles that maintain their core gameplay [3][5] - The mini-game versions of established SLG titles have undergone significant adaptations, such as simplified mechanics and vertical screen formats, to cater to the platform's user experience [10][12] - The development environment for mini-games has matured, allowing for the successful adaptation of SLG games, which previously faced challenges in transitioning to lighter formats [16][18] User Demographics - The user demographics for SLG mini-games have diversified, with a notable increase in female users and younger audiences, indicating a shift from the traditional male-dominated user base [18][19] - The introduction of features like "youth servers" in titles like "Rate of the Land" has successfully attracted a younger demographic, enhancing the game's appeal [19][21] Competitive Landscape - The competition within the SLG genre is evolving, with a focus on integrating casual elements and exploring new themes to attract a wider audience [22][23] - The mini-game platform presents a unique opportunity for SLG titles to reach new users, leveraging the platform's social features and lower entry barriers [23][27] - As more SLG products enter the mini-game space, the potential for innovation in gameplay and monetization strategies is expected to increase, reshaping the competitive dynamics of the genre [21][22]

Group 1 - The core concept of the news revolves around the success of tap4fun's game "Apex Girl," which combines SLG (Simulation and Strategy Game) elements with idol cultivation and business simulation, creating a unique gaming experience [3][22][42] - "Apex Girl" has achieved significant market success, with nearly 8 million downloads and over $26 million in in-app purchases as of April 2025, making it one of tap4fun's most successful overseas products [1][27] - The game features a low entry barrier for players, allowing them to engage in artist recruitment, song recording, and world tours, which effectively attracts and retains a broad user base [6][26] Group 2 - The SLG genre is experiencing a trend towards "SLG+X" integration, where traditional SLG mechanics are combined with other gameplay elements to enhance user engagement and broaden the audience [2][43] - Tap4fun has a history of successful SLG titles, including "Kiss of War" and "Age of Apes," which have helped the company regain its position in the market after facing challenges in 2017 [27][31] - The company has recognized the importance of localized strategies and cultural adaptation in its game development process, which has contributed to its success in international markets [29][42] Group 3 - The game "Apex Girl" utilizes AIGC (Artificial Intelligence Generated Content) technology for character design and marketing, enhancing its appeal to the target audience [24][26] - Tap4fun's approach to game development emphasizes the integration of light content to lower user acquisition costs while gradually converting casual players into core SLG users [42][44] - The company is exploring new opportunities in the SLG market by focusing on niche themes and innovative gameplay, indicating a shift from broad, generic titles to more specialized offerings [43][44]