Group 1 - The gaming sector experienced a slight pullback on November 11, with the gaming ETF (159869) declining nearly 1%, opening up low-position layout opportunities [1] - As of November 10, the gaming ETF (159869) had a product scale of 11.554 billion yuan, facilitating investors to easily allocate to A-share gaming leaders [1] - Perfect World was awarded "Outstanding Overseas Game Publisher of the Year" at the GTC2025 Global Traffic Conference for its game "Persona 5: Phantom of the Night," which topped the iOS free charts in major markets like the US, Japan, and South Korea [1] Group 2 - The gaming sector reported a revenue growth of 27.1% year-on-year and a significant net profit increase of 111% in Q3 2025, becoming a core driver of the media industry [1] - The profit margin of the sector rose to 17.8%, indicating strong profitability elasticity [1] - Leading companies like Gigabit saw net profit growth exceeding 300%, while Perfect World successfully turned losses into profits, reflecting robust internal growth dynamics within the sector [1] Group 3 - The long-term outlook for the gaming sector remains positive, driven by AI technological innovation, content ecosystem upgrades, and the evolution of commercialization models [2] - The gaming ETF (159869) closely tracks the CSI Animation and Gaming Index, focusing on core assets in the A-share animation and gaming industry [2]

Investment Rating - The investment rating for the company is "Buy" [11] Core Insights - The company reported a significant year-on-year revenue increase of 31.45%, achieving a total revenue of 1.726 billion yuan in Q3 2025, along with a net profit of 162 million yuan, marking a turnaround from losses [2] - The improvement in revenue and profitability is attributed to the successful launch of multiple new games and a growing esports business, with notable titles like "Zhu Xian World" and "Persona: Nightshade" set to release in the coming years [2][4] - The company's film and television segment also saw substantial growth, with a revenue increase of 433% year-on-year, totaling 920 million yuan in the first three quarters [2] Financial Performance - The company achieved a gross margin of 64.83%, an increase of 13.06 percentage points year-on-year, while all three major expense ratios (sales, management, and R&D) decreased [3] - Forecasted revenues for 2025-2027 are estimated at 6.715 billion, 10.767 billion, and 9.888 billion yuan, respectively, with corresponding net profits of 632 million, 1.711 billion, and 1.820 billion yuan [5][11] Future Focus - The company is focusing on the testing schedule for "Eternal Ring," which is expected to enhance its market position with innovative gameplay and technology [4] - The game is anticipated to generate approximately 1.4 billion yuan in profit for the company in 2026, based on its expected performance compared to similar titles [5]

Core Viewpoint - Perfect World (002624) emphasizes its commitment to a global integrated development path through a diversified and high-quality product matrix, enhancing its capabilities in both domestic and international markets [1] Group 1: Product Strategy - The company is improving its youth-oriented publishing system by leveraging projects like "Persona 5: The Phantom X" and "Tower of Fantasy" [1] - Upcoming title "Eternal Loop" is set to launch across PC, mobile, and console platforms globally, which is expected to further advance the company's strategy of multi-platform expansion [1] Group 2: Global Development - The issuance team is focused on strengthening the company's independent publishing capabilities both domestically and internationally, ensuring effective support for future global releases [1]

Investment Rating - The report maintains an "Increase" rating for the media industry [1] Core Insights - The media sector achieved a total revenue of 127.9 billion yuan in Q3 2025, representing a year-on-year growth of 7%. The net profit attributable to shareholders reached 10.1 billion yuan, showing a significant increase of 40% year-on-year [4][16] - The gaming sector outperformed expectations, with a net profit growth of 76% year-on-year, driven by successful new game launches [4][20] - The marketing sector saw a revenue increase of 9% year-on-year, reflecting a recovery in the macroeconomic environment and improved advertising spending [4][66] - The film and television industry turned profitable, with a net profit of 0.9 billion yuan, indicating a positive trend in the movie market [4][66] - Digital media revenue grew by 8%, although net profit margins declined [4][66] - The publishing sector faced revenue pressure, with a year-on-year decline of 5% [4][66] Summary by Sections Overall Performance - The media industry reported a total revenue of 127.9 billion yuan in Q3 2025, with a year-on-year increase of 7% and a net profit of 10.1 billion yuan, up 40% year-on-year [4][13][16] Gaming Sector - The domestic gaming market's actual sales revenue was 880.3 billion yuan, down 4.1% year-on-year but up 7.0% quarter-on-quarter. The net profit for A-share gaming companies reached 55.9 billion yuan, reflecting a 76% year-on-year increase [4][20][27] - Major titles like "Endless Winter" and "Kingshot" contributed significantly to revenue growth [4][20] Marketing Sector - The marketing industry generated 45.3 billion yuan in revenue, a 9% increase year-on-year, with a net profit of 1.63 billion yuan, up 14% year-on-year [4][66][72] - The sector benefited from AI technology enhancing advertising efficiency and a recovery in advertising spending from major brands [4][66] Film and Television Sector - The film and television industry reported a revenue of 8.61 billion yuan, down 2% year-on-year, but achieved a net profit of 0.9 billion yuan, indicating a turnaround [4][66] Digital Media Sector - Digital media revenue increased by 8% to 6.5 billion yuan, but net profit fell by 28% to 0.32 billion yuan, with a net profit margin decline [4][66] Publishing Sector - The publishing sector's revenue decreased by 5% to 29.84 billion yuan, while net profit grew by 13% to 2.47 billion yuan, primarily due to tax policy impacts [4][66]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - The company reported Q3 2025 earnings with revenue of 1.726 billion yuan, a year-on-year increase of 31.45%. The net profit attributable to shareholders was 162 million yuan, and the net profit excluding non-recurring items was 165 million yuan, marking a return to profitability [2][4]. - The gaming business generated revenue of 1.57 billion yuan in Q3, reflecting a year-on-year increase of 28.6% and a quarter-on-quarter increase of 5.4%. The net profit attributable to shareholders from gaming was approximately 213 million yuan, with a non-recurring net profit of about 201 million yuan, up 9.4% quarter-on-quarter [2][12]. - The esports business showed strong performance, and attention is drawn to the upcoming third test of the game "异环" [6][12]. Summary by Sections Financial Performance - In Q3 2025, the company achieved revenue of 1.726 billion yuan, with a year-on-year growth of 31.45%. The gaming segment contributed 1.57 billion yuan, with a year-on-year increase of 28.6% and a quarter-on-quarter increase of 5.4% [2][4][12]. - The company’s esports business continues to grow, highlighted by the successful hosting of the CAC 2025 event in Shanghai [12]. Game Development - The game "诛仙世界" is set to launch by the end of 2024, and a new version was released in Q3, contributing to revenue and profit [12]. - New games launched in Q3, including "女神异闻录：夜幕魅影" and "诛仙 2", have also contributed to revenue growth [12]. Profit Forecast - The company forecasts net profits of 770 million yuan and 1.51 billion yuan for 2025 and 2026, respectively, with corresponding PE ratios of 43.4 times and 22.0 times [12].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [4][12]. Core Insights - The company reported strong performance in Q3 2025, with a revenue of 5.417 billion yuan, a year-on-year increase of 33.00%, and a net profit of 666 million yuan, up 271.17% year-on-year [2][3]. - The gaming segment showed a revenue of 4.475 billion yuan, a 15.64% increase year-on-year, with a gross margin improvement to 69.29% [3]. - The company is focusing on the development of its key project, "Yihuan," which has completed domestic and overseas testing phases and is preparing for further testing [3][4]. Financial Performance Summary - For the first three quarters of 2025, the company achieved a revenue of 5.417 billion yuan, with a net profit of 666 million yuan, reflecting significant growth compared to the previous year [2]. - The company's expense ratios for sales, management, and R&D improved, with reductions of 6.85, 6.40, and 8.88 percentage points respectively [2]. - The projected earnings per share (EPS) for 2025-2027 are estimated at 0.43, 0.79, and 0.95 yuan per share, with corresponding price-to-earnings (PE) ratios of 40, 22, and 18 times [4][6].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for potential price appreciation [7][11]. Core Insights - The company achieved a revenue of 5.417 billion RMB in the first three quarters, representing a year-over-year increase of 33.0%, with a net profit of 666 million RMB, up 271.2% year-over-year [7]. - The third quarter alone saw a revenue of 1.726 billion RMB, reflecting a year-over-year growth of 31.5% [7]. - The performance is driven by the gaming segment, particularly the successful launches of new games, which have significantly contributed to revenue growth [9]. Summary by Sections Company Overview - The company operates in the media industry, with a current A-share price of 16.96 RMB as of October 30, 2025, and a market capitalization of approximately 30.998 billion RMB [2]. Financial Performance - The company reported a net profit of 491 million RMB for 2023, with projections of 876 million RMB for 2025, indicating a recovery trend [8]. - The earnings per share (EPS) are expected to improve from -0.68 RMB in 2024 to 0.45 RMB in 2025 [8]. Business Segments - The gaming segment constitutes 93.0% of the company's revenue, with significant contributions from new game releases [3]. - The company is focusing on enhancing its content matrix in the film and television sector while also expanding its esports initiatives [9]. Future Outlook - The company anticipates continued revenue growth driven by the upcoming game "异环," which is expected to launch in 2025 and could generate over 5 billion RMB in its first year [9]. - Profitability is projected to improve, with net profits expected to reach 1.415 billion RMB by 2026 [8].

Investment Rating - The report maintains a "Buy" rating for the company [6] Core Insights - The company reported a significant increase in revenue and profitability for the first three quarters of 2025, achieving a total revenue of 5.417 billion yuan, a year-on-year growth of 33% [1] - The gaming segment showed strong performance, with revenue reaching 4.475 billion yuan, up 15.64% year-on-year, driven by the successful launch of new titles such as "Zhu Xian 2" and "Zhu Xian World" [2] - The company's esports and film businesses also experienced substantial growth, with esports revenue increasing and film revenue soaring by 432.9% to 918 million yuan due to multiple successful releases [4] Financial Overview - For 2025, the company is projected to achieve a net profit of 855 million yuan, representing a year-on-year increase of 166.4%, with further growth expected in subsequent years [5] - The earnings per share (EPS) is forecasted to improve from -0.66 yuan in 2024 to 0.44 yuan in 2025, indicating a recovery in profitability [5] - The company's total revenue is expected to grow from 5.57 billion yuan in 2024 to 7.743 billion yuan in 2025, reflecting a growth rate of 39% [5] Business Performance - The successful launch of "Zhu Xian 2" topped the iOS free game charts on its first day, reinforcing the company's competitive position in the MMORPG segment [2] - The original RPG game "Yihuan" also received positive feedback during its overseas testing, indicating strong international interest and potential for future growth [3] - The company is actively expanding its product offerings and enhancing its operational strategies across multiple gaming genres [2][3]

Core Insights - Perfect World reported a significant increase in revenue and net profit for the first three quarters of 2025, with total revenue reaching 5.417 billion yuan, a year-on-year growth of 33% [1] - The gaming segment generated 4.475 billion yuan in revenue, reflecting a 15.64% increase, while the gross profit margin improved from 65.78% to 69.29% [1] - The company is actively developing new games, including the supernatural urban open-world RPG "Yihuan," which is currently in the deep polishing phase [2] Financial Performance - For the first three quarters of 2025, the company achieved a net profit of 666 million yuan, marking a turnaround from losses in the previous year [1] - In Q3 alone, revenue was 1.726 billion yuan, up 31.45% year-on-year, with net profit soaring by 176.59% to 162 million yuan [1] Game Development and Releases - The company has seen a decline in revenue from several existing mobile games due to lifecycle effects, but new high-quality titles have mitigated the negative impact [1] - Notable new releases include "Zhu Xian World" and "Zhu Xian 2," which have contributed positively to revenue in the MMORPG segment [1] - The esports business has also shown a continuous growth trend, with revenue increasing compared to the previous year [1] Upcoming Projects - "Yihuan," an original supernatural urban open-world RPG, completed its domestic and overseas testing phases and is now undergoing further development with advanced technologies [2] - The game is set to feature enhancements using Unreal Engine 5.5 and NVIDIA DLSS4, along with comprehensive optimizations across various game elements [2]

Core Viewpoint - The A-share gaming landscape has changed in the first half of the year, with Century Huatong leading significantly in revenue, followed by 37 Interactive Entertainment and Perfect World returning to the top three [3][5]. Revenue Performance - Century Huatong achieved revenue of 17.207 billion yuan, a year-on-year increase of 85.5%, far surpassing 37 Interactive Entertainment's revenue of 8.486 billion yuan [3]. - Perfect World reported revenue of 3.691 billion yuan, up 33.74%, primarily driven by a surge in film and television revenue, which reached 767 million yuan (up 756.35%) [3]. - Only Century Huatong and Perfect World maintained high growth among the top five gaming companies, while 37 Interactive Entertainment and Shenzhou Taiyue experienced revenue declines [3]. Profitability Analysis - Century Huatong emerged as the most profitable gaming stock in A-shares, with a net profit exceeding 2.6 billion yuan, the only company in the sector to surpass 2 billion yuan in net profit [4]. - 37 Interactive Entertainment ranked second with a net profit exceeding 1 billion yuan, while Heiying Network, Giant Network, and Gibit each reported net profits exceeding 600 million yuan [4]. - Century Huatong's net profit surged by 129%, while Gibit and Heiying Network also saw significant increases [4]. Market Capitalization - Century Huatong's market capitalization exceeded 140 billion yuan, reclaiming its position as the top gaming stock, followed by Giant Network at over 80 billion yuan and Heiying Network at over 50 billion yuan [4]. - 37 Interactive Entertainment fell to fourth place in market capitalization [4]. Overseas Revenue Insights - Century Huatong's overseas revenue reached 8.958 billion yuan, leading significantly, while 37 Interactive Entertainment and Shenzhou Taiyue each exceeded 2 billion yuan [7]. - Heiying Network and Perfect World had overseas revenues around 200 million yuan, indicating a reliance on the domestic market [7]. Product Development Focus - The leading A-share gaming companies are focusing on high-quality IP development to mitigate market risks and enhance user attraction [10]. - The SLG (strategy game) genre remains a core focus, with 37 Interactive Entertainment having 10 SLG products in development [11]. - The trend of launching both APP and mini-program versions simultaneously is becoming mainstream in the industry, with companies like Shenzhou Taiyue adapting to market demands [12].