Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company has released its mid-year performance forecast for 2025, indicating a revenue of no less than 3.05 billion (approximately +37% year-on-year) and a net profit of no less than 790 million (approximately +215% year-on-year), exceeding expectations [2][4]. - The strong performance of self-developed games and the continued growth trend of TapTap are key drivers for the company's success [2][4]. - The company has a promising pipeline of new games and is expanding its community platform, which is expected to contribute to future growth [2]. Summary by Sections Performance Forecast - The company forecasts a revenue of at least 3.05 billion for the first half of 2025, reflecting a year-on-year increase of about 37% [2][4]. - The net profit is projected to be at least 790 million, representing a year-on-year increase of approximately 215% [2][4]. Game Development and Community Growth - Self-developed games such as "Ragnarok M: Beginner's Server," "Heart Town," and "Torchlight: Infinite" have shown strong performance, boosting revenue and gross margin [7]. - TapTap's monthly active users (MAU) remain stable year-on-year, with improvements in advertising algorithms and user engagement driving revenue and profit growth [7]. - The company has successfully launched new games, with "Heart Town" achieving a top 10 ranking in sales and "Etheria: Restart" entering the top 50 in the U.S. sales chart [7]. Strategic Investments - The company is expanding its game portfolio by acquiring a 5.3% stake in MiAO for 14 million USD, a startup founded by the former CEO of Giant, which has expertise in social games [7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4][11] Core Views - The company is expected to see significant growth driven by new and existing games, as well as the TapTap platform, with a projected revenue of at least 3.05 billion yuan for H1 2025, representing a year-on-year increase of approximately 37% [4][8] - Net profit is anticipated to be no less than 790 million yuan, reflecting a year-on-year growth of around 215%, exceeding previous expectations [4][8] - The performance boost is attributed to successful self-developed games and improvements in the TapTap platform's advertising algorithms and user engagement [4][5] Financial Summary and Valuation Metrics - Revenue projections for 2025 are set at 6.466 billion yuan, with a year-on-year growth of 29% [7] - Net profit for 2025 is estimated at 1.71 billion yuan, showing a year-on-year increase of 110.7% [7] - The company’s gross margin is expected to improve to 71% in 2025, while the net margin is projected at 26.4% [7] - Earnings per share (EPS) for 2025 is forecasted at 3.5 yuan, with a price-to-earnings (P/E) ratio of 15.0 times [7]