Core Viewpoint - Niraku has entered into an agreement with GAIA to acquire the operations of two Japanese pachinko parlors, which is a strategic move to enhance its market presence and capitalize on the recovering Japanese economy [1] Group 1: Business Strategy - The operation of pachinko parlors is a crucial component of the company's business strategy [1] - The company is actively investing capital to leverage the strong performance of smart gaming machines in the market [1] - As part of its long-term business plan, the company will regularly invest in new parlors and acquire existing ones to ensure a stable revenue source from gaming operations [1] Group 2: Market Opportunity - The company believes that the acquisition of GAIA's business will significantly expand its market share in the pachinko parlor sector [1] - The company is targeting markets with high growth potential and strong demand for gaming facilities [1] - The ongoing recovery of the Japanese economy presents a key opportunity for business growth in the gaming sector [1]

Core Viewpoint - NIRAKU has entered into an agreement to acquire the operations of two Japanese pachinko parlors from GAIA, which is seen as a strategic move to enhance its market presence and capitalize on the recovering Japanese economy [1] Group 1: Business Strategy - The acquisition of GAIA's pachinko parlor operations is a significant part of NIRAKU's business strategy, aimed at expanding its market share in the gaming industry [1] - NIRAKU views the strong performance of smart gaming machines as a key opportunity for business growth, driven by the ongoing recovery of the Japanese economy [1] - The company plans to regularly invest in the development of new gaming parlors and acquire existing ones to ensure a stable revenue stream from its gaming operations [1] Group 2: Market Potential - The gaming industry in Japan, particularly the pachinko segment, is identified as a high-growth market with strong demand [1] - NIRAKU believes that acquiring GAIA's established operations will significantly enhance its performance in the pachinko parlor business [1]

Core Viewpoint - The report from CICC gives a "Outperform" rating to Huicai Holdings (01180) with a target price of HKD 1.3, highlighting the company's strong position in the multi-live game (LMG) terminal sales to Macau gaming operators [1] Group 1 - CICC visited Huicai Holdings' R&D center in Zhuhai on September 23, indicating a proactive approach in understanding the company's operations [1] - The company maintains a solid advantage in selling LMG terminals to Macau gaming operators, with new potential suppliers unlikely to significantly erode its market share starting from Q4 2026 [1] - Huicai Holdings is making progress in game development, showing promising early signs, although it requires time to fully catch up [1]

Core Viewpoint - Credit Lyonnais has issued a report rating Huicai Holdings (01180) as "Outperform" with a target price of HKD 1.3 [1] Group 1: Company Insights - The report highlights that Credit Lyonnais visited Huicai Holdings' R&D center in Zhuhai on September 23 [1] - The company maintains a strong advantage in selling Multi-Player Live Game (LMG) terminals to Macau gaming operators [1] - From Q4 2026 onwards, new potential suppliers are unlikely to significantly erode Huicai's market share [1] Group 2: Development and Future Outlook - Huicai Holdings is making progress in game development, showing promising early signs [1] - However, the company requires time to fully catch up in this area [1]

Financial Data and Key Metrics Changes - The company reported a profit after tax of AUD 4.9 million, with normalized profit before tax of AUD 13.9 million on revenue of AUD 152.1 million, which is similar to AUD 14.3 million in the previous corresponding period [3][4] - Revenue increased by 25% compared to the prior period, reflecting a 6.6% increase from the period ended December 2024 [4][7] - Underlying EBITDA for the period was AUD 26.9 million, consistent with AUD 26.8 million reported in the prior period, while the reported EBITDA was AUD 14.6 million [10][18] Business Line Data and Key Metrics Changes - North America revenue was AUD 83.1 million, a 225% increase on the prior period, with recurring revenue contributing 47% of segment revenues [11][12] - Latin America and Europe revenues were AUD 31.6 million, an increase from AUD 29.3 million in the prior period but a reduction of 16% compared to the prior half [13] - The digital segment reported revenue of AUD 2.08 million, down from AUD 5.1 million in the prior period due to the termination of the GAN exclusivity contract [17] Market Data and Key Metrics Changes - International revenues accounted for 80% of total revenue, down from 86% in the prior period due to stronger domestic contributions [6] - The Asia Pacific segment achieved revenue of AUD 34.6 million, an increase of 8147% from prior periods, benefiting from the release of new products [14] Company Strategy and Development Direction - The company aims to maintain its investment in product development to compete effectively against larger industry participants [5] - There is a focus on technology, development, and culture to improve product performance and staff retention [19][21] - The company is pursuing opportunities in existing and new markets, particularly in North America and Latin America [26][28] Management Comments on Operating Environment and Future Outlook - Management expressed caution due to competitive factors and challenging economic conditions that may impact operations [5] - The company remains optimistic about its infrastructure and strategies to compete against larger providers [28] - Future growth opportunities are anticipated, particularly following the release of new game titles and hardware [26][27] Other Important Information - The company has a net cash position of AUD 1.4 million with borrowings of AUD 11.4 million, reflecting a reduction in net cash due to inventory purchases [21][24] - Inventory levels increased by 14% to AUD 78.2 million, with 34% represented by finished goods [22] Q&A Session Summary Question: Inquiry about the automatic transaction - The management referred to the ASX announcement regarding the automatic takeover bid and indicated that further details would be provided to shareholders [2][29] Question: No further questions were raised during the session - The operator confirmed that there were no additional questions from participants [32]