Investment Rating - The report recommends a positive investment outlook for the technology sector, specifically highlighting key stocks in electronics, computing, communications, and media [5][10]. Core Insights - The report identifies several companies as "gold stocks" for October 2025, including Luxshare Precision, GigaDevice, Taxu Technology, Meitu, Zhongji Xuchuang, Runze Technology, Kaiying Network, and Giant Network [10][14]. - The analysis emphasizes the importance of AI-driven innovations and market trends, particularly in consumer electronics and data center infrastructure, which are expected to drive growth for the highlighted companies [16][20]. Summary by Category Electronics - **Luxshare Precision**: The company is positioned for steady growth due to its deep integration with core clients and advancements in new materials and technologies. It is capitalizing on the demand for AI computing and data center upgrades, with a focus on high-value products [16]. - **GigaDevice**: The company is experiencing a robust upward trend in its fundamentals, with all storage products in a price increase cycle. It is expanding its market share in NOR Flash and enhancing its product matrix in DRAM [17]. Computing - **Taxu Technology**: As a leader in the tax IT industry, the company is leveraging its dual-driven business model. It is expected to benefit from AI integration, enhancing its SaaS subscription model and expanding its market reach [18]. - **Meitu**: The company has successfully transitioned from a traffic-based model to a subscription model, leveraging its aesthetic expertise and technology to expand its user base and global market presence [19]. Communications - **Zhongji Xuchuang**: The company is a leading global player in optical modules, maintaining stable delivery capabilities through strong industry partnerships. It is advancing in cutting-edge technologies like silicon photonics [20]. - **Runze Technology**: Positioned as a leading third-party IDC and AIDC provider, the company is expected to benefit from the increasing investments in data centers by major internet firms [21]. Media - **Kaiying Network**: The company is set to launch several new games, which are anticipated to drive revenue growth. Its strong product pipeline and AI integration in gaming are expected to enhance user engagement [22]. - **Giant Network**: The company is witnessing significant growth in its gaming titles, with a focus on AI-driven gameplay innovations that are expected to increase user activity and revenue [22]. Profit Forecasts - The report provides earnings per share (EPS) and price-to-earnings (PE) ratios for the recommended stocks, indicating expected growth in EPS for 2024 to 2027 across various companies [23].

Group 1: Licensing and Partnerships - The company signed a licensing agreement with Tianqiong Interactive for the exclusive development, operation, and promotion of products focused on the Legend IP [1] - Sanjiu Interactive will pay 100 million yuan annually for showcasing and promoting its games in the Legend Box [1] - Tanwan Games will pay 200 million yuan to establish a star brand area within the Legend Box for game promotion and live streaming [1] - Zhangwan Games will pay 150 million yuan for a brand area in the Legend Box for game promotion and live streaming [1] Group 2: New Game Releases - The public beta for "Ragnarok: The Promised Adventure" has begun, with several new games like "Three Kingdoms: The Return of the World," "Tomb Raider: The Journey," and "Douluo Continent: The Evil Legend" expected to launch soon, driving revenue growth [2] Group 3: AI Strategy Implementation - The company launched an AI development platform called "SOON," which has received strategic investments from companies like Bigo Group and Hengdian Capital [3] - The platform divides game generation into three core elements: art assets, code creation, and numerical design, enabling collaborative AI generation [3] - The company invested in EVE, a 3D AI companion application, aiming to create deep emotional connections with users, set to launch in 2025 [3] - The company introduced a healing AI brand "Warm Star Valley Dream Journey," targeting emotional companionship for ages 12-35, with plans to launch in 2025 [3] Group 4: Profit Forecast Adjustments - The company maintains its net profit forecast for 2025 at 2.04 billion yuan and raises the 2026 forecast to 2.531 billion yuan from the previous 2.348 billion yuan [4] - A new net profit forecast of 2.838 billion yuan for 2027 has been added, with corresponding PE ratios for 2025-2027 at 30x, 24x, and 22x respectively [4] - The company maintains a "Buy" rating [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The future of the Legend Box is promising, with a licensing agreement signed between the company's subsidiary and Tianqiong Interactive for exclusive development and operation of Legend-themed products [4] - The company is set to launch new game products, including "Ragnarok: The Promised Adventure," which is expected to drive revenue growth [6] - The AI strategy is accelerating, with the introduction of an AI development platform and investments in AI applications aimed at enhancing user experience and engagement [6] Financial Data and Profit Forecast - Total revenue is projected to reach 5,221 million yuan in 2025, with a year-on-year growth rate of 2.0% [5] - The net profit attributable to the parent company is expected to be 2,040 million yuan in 2025, reflecting a year-on-year growth of 25.3% [5] - Earnings per share are forecasted to be 0.95 yuan in 2025, with a projected PE ratio of 30 [5] - The company has adjusted its profit forecasts, maintaining the 2025 net profit estimate at 2,040 million yuan and increasing the 2026 estimate to 2,531 million yuan [6]

Group 1 - In August, the A-share market strengthened, leading to positive returns for most of the recommended stocks by brokerages, with 244 out of 287 stocks recommended showing price increases [1][3] - The average gain of the recommended stocks in August was positive, with notable performances from brokerages such as Kaiyuan Securities and AVIC Securities [1][5] - The top three performing stocks in August were Huasheng Tiancai (600410.SH) with a gain of 115.11%, followed by Hanwujing (688256.SH) with a gain of 110.36%, and Siquan New Materials (301489.SZ) with a gain of 100.66% [3][4] Group 2 - As of September 4, over 40 brokerages had recommended 285 stocks for September, with Kaiying Network (002517.SZ) and Deepin Technology (300454.SZ) being the most frequently recommended [2][8] - Kaiying Network was recommended by multiple brokerages due to its upcoming product cycle and stable mid-year performance, reporting a revenue of 2.578 billion yuan, a year-on-year increase of 0.89%, and a net profit of 950 million yuan, a year-on-year increase of 17.41% [9][10] Group 3 - The technology sector performed exceptionally well in August, with 7 out of the top 10 recommended stocks belonging to this sector [5][6] - Conversely, the healthcare sector underperformed, with half of the stocks in the top 10 largest declines being from this industry, including Yifang Biotechnology (688382.SH) which fell by 19.62% [6][7] Group 4 - Among the stocks recommended for September, Deepin Technology had a high price-to-earnings ratio of 240.05, indicating a significant valuation compared to other recommended stocks [12] - Deepin Technology reported a revenue of 3.009 billion yuan for the first half of 2025, a year-on-year increase of 11.16%, but also reported a net loss of 228 million yuan, which was a 61.54% increase in loss compared to the previous year [12]

Core Viewpoint - The company has shown significant improvement in profitability, driven by new game launches and AI initiatives, maintaining a "buy" rating for the stock [2][3]. Financial Performance - In H1 2025, the company achieved revenue of 2.578 billion yuan (up 0.89% year-on-year) and a net profit of 950 million yuan (up 17.41% year-on-year) [2]. - The Q2 2025 revenue was 1.225 billion yuan (down 1.80% year-on-year), with a net profit of 432 million yuan (up 12.79% year-on-year) [2]. - The gross margin for H1 2025 was 82.4% (up 0.4 percentage points), and the net margin was 36.8% (up 5.2 percentage points) [2]. Growth Drivers - The company is optimistic about the growth potential from new game launches, including titles like "Dragon Valley World" and "Digimon: Source," which have performed well in rankings [3]. - The company has a rich pipeline of games with over 14 titles approved and more in development, covering various genres [3]. - The overseas revenue reached 200 million yuan (up 60% year-on-year), and information service revenue was 660 million yuan (up 65% year-on-year) with a gross margin of 91% [3]. Strategic Initiatives - The company has secured exclusive operational rights for the "Legend Box," aiming to create a comprehensive community platform integrating gaming, live streaming, esports, and more [3]. - The company is exploring AI technologies, launching platforms for automated content generation and developing AI applications for emotional companionship [4]. Market Sentiment - Recent ratings from 15 institutions have all been "buy," with an average target price of 26.01 yuan [8].

Core Viewpoint - The company is expected to enter a new product cycle in 2025, with significant performance improvements anticipated due to AI optimization in marketing materials and algorithms for legendary games [1][2]. Group 1: Financial Projections - The company forecasts EPS of 1.85 CNY, 1.81 CNY, and 2.08 CNY for the years 2025-2027 [1]. - A target price of 24.20 HKD has been set for the company, with an initial "Buy" rating [1]. Group 2: Business Overview - Founded in 2015, the company is a leading internet enterprise in China, integrating development, operation, and promotion, with over 380 game products and more than 600 million registered users [1]. - The company’s average monthly active users (MAU) exceed 10 million, and its consumer goods business is projected to generate 100 million CNY in revenue in 2024, accounting for 1.8% of total revenue [1]. Group 3: IP and Game Development - The company possesses multiple classic IPs, including "Legend," "Douluo Dalu," and "Hot Blood Legend," and is actively exploring new IPs and markets [2]. - A recent collaboration with Zhongyou to launch "Douluo Dalu: Slime Academy" achieved top rankings on the APP Store and Taptap [2]. - The company has 11 games that have been operational for over 5 years and 28 games for over 3 years, showcasing its long lifecycle management capabilities [2]. Group 4: AI Integration - The company emphasizes the application of AI technology in gaming, utilizing a "self-research + investment" strategy to enhance efficiency in game development and distribution [2]. - The self-developed "Hetu" and "Luoshu" systems leverage AI for smart analysis and precise marketing, improving operations in game promotion and user acquisition [2]. - In May 2025, the company invested 10 million CNY in Hangzhou Jiyi Artificial Intelligence Technology to optimize the entire game development and operation process [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4]. Core Views - The company's revenue for H1 2025 reached 2.578 billion yuan, a year-on-year increase of 0.89%, while the net profit attributable to shareholders was 950 million yuan, up 17.41% year-on-year. The net profit margin improved to 36.8%, an increase of 5.2 percentage points year-on-year [3][4]. - The company has a rich pipeline of new games and is actively exploring AI applications, which are expected to drive future growth. The anticipated net profits for 2025-2027 are projected to be 2.167 billion, 2.401 billion, and 2.649 billion yuan, respectively [4][6]. Financial Performance - In H1 2025, the gross margin was 82.4%, reflecting a year-on-year increase of 0.4 percentage points. The company achieved a net profit of 432 million yuan in Q2 2025, representing a 12.79% increase year-on-year [3][4]. - The company’s mobile gaming revenue for the first half of the year was 1.9 billion yuan, a decrease of 10% year-on-year, but new game launches are expected to provide a boost [4][5]. - The overseas revenue for H1 2025 was 200 million yuan, showing a significant year-on-year increase of 60% [4]. Product Pipeline and Growth Drivers - The company has over 14 games approved for release and more than 4 games in development, covering various genres such as RPG and SLG. Notable upcoming titles include "Dragon Valley World" and "Digital Monster: Source" [4][5]. - The company has secured exclusive operational rights for the "Legend Box," which is expected to enhance revenue streams significantly [4][5]. AI and IP Development - The company is actively developing its IP portfolio and exploring AI technology, with initiatives such as the launch of the "SOON" platform for automated content generation and the AI emotional companion application "EVE" [5][6]. - The introduction of the "Warm Star Valley Dream Journey" toy brand indicates the company's strategy to leverage its IP in various sectors [5]. Valuation Metrics - The projected P/E ratios for 2025-2027 are 22.2, 20.1, and 18.2 times, respectively, indicating a favorable valuation outlook [4][6].

Investment Rating - The report maintains a "Buy" rating for the company [10] Core Views - The company achieved a revenue of 1.225 billion yuan in Q2 2025, a year-on-year decrease of 1.80%, while the net profit attributable to the parent company was 432 million yuan, an increase of 12.79% year-on-year [2][5] - The company has a rich pipeline of new games and is actively advancing its AI initiatives, which are expected to benefit from related catalysts [2][8] Summary by Sections Financial Performance - In H1 2025, the company reported a total revenue of 2.578 billion yuan, a year-on-year increase of 0.89%, and a net profit attributable to the parent company of 950 million yuan, up 17.41% year-on-year [5][6] - Q2 2025 saw a slight decline in revenue due to fewer new game launches, but the "Legend Box" and overseas markets continued to grow rapidly, with overseas revenue increasing by 60% to 200 million yuan [6][8] Cost and Profitability - The company's sales expenses decreased by 13.7% year-on-year to 407 million yuan in Q2, resulting in a sales expense ratio of 33.3% [7] - The gross margin and net profit margin for Q2 were 81% and 35%, respectively, maintaining a high level of profitability [7] Future Growth Drivers - The company has partnered with several gaming companies to establish brand zones within the "Legend Box," which is expected to gradually enhance performance [8] - Upcoming game releases, including "Blood of Jianghu: Return" and others, are anticipated to drive revenue growth [8] - The company is making significant strides in AI, with projects like the 3D AI companion application "EVE" and the AI game development platform "SOON" expected to advance towards commercialization [8] Share Buyback Plan - The company plans to initiate a share buyback program with a total fund of up to 200 million yuan, aiming to repurchase shares at a price not exceeding 29.33 yuan per share [8] Earnings Forecast - The company is projected to achieve net profits of 2.16 billion yuan and 2.44 billion yuan in 2025 and 2026, respectively, corresponding to PE ratios of 23.0 and 20.4 [8]

Investment Rating - The report provides a "Buy" recommendation for the technology sector, specifically highlighting key stocks in electronics, computing, communication, and media [4][7]. Core Insights - The report identifies key stocks in the technology sector for September 2025, including GoerTek, Yutong Optical, Jiufang Zhitu, Meitu, Tianfu Communication, Huafeng Technology, Kaiying Network, and Giant Network [4][7]. - GoerTek is positioned for long-term growth through investments in AI smart hardware and AR/VR, with a focus on XR optics and smart wearable devices [9]. - Yutong Optical is recognized as a leader in the security lens market, with strong growth potential in automotive lenses and molded glass [10]. - Jiufang Zhitu is noted for its leadership in online high-end investment education services, with a robust talent pool and multiple growth drivers [11]. - Meitu has successfully transitioned to a subscription model and is leveraging its aesthetic expertise to expand globally [12]. - Tianfu Communication is expected to benefit from the growth of high-speed optical engines and new product forms [12]. - Huafeng Technology is positioned to capitalize on the strong demand for AI applications and high-performance connectivity solutions [12]. - Kaiying Network is set to drive growth through new game launches and AI technology integration [15]. - Giant Network is experiencing significant growth in user engagement and revenue from its popular game titles [16]. Summary by Category Electronics - GoerTek: Focus on AI smart hardware and strategic partnerships with leading tech companies [9]. - Yutong Optical: Market leader in security lenses with growth in automotive and new consumer segments [10]. Computing - Jiufang Zhitu: Leading online investment education firm with a strong operational model and talent base [11]. - Meitu: Transitioned to subscription services with a focus on aesthetic technology and global expansion [12]. Communication - Tianfu Communication: Growth in high-speed optical products and new customer acquisition [12]. - Huafeng Technology: Strong demand for AI applications and high-performance connectivity solutions [12]. Media - Kaiying Network: New game launches and AI integration expected to drive revenue growth [15]. - Giant Network: Significant user engagement and revenue growth from popular game titles [16].

Core Viewpoint - The company has successfully reversed its previous losses and achieved significant revenue and profit growth, establishing itself as a key player in the gaming industry, particularly in the retro gaming segment [1][3][5]. Financial Performance - The company's revenue has resumed growth since 2020, reaching 5 billion yuan last year, with net profit exceeding 1 billion yuan for three consecutive years [1]. - Last year's revenue grew by 19% year-on-year, totaling 5.1 billion yuan, with self-operated and joint-operated revenues accounting for 63% of total revenue [5]. Business Developments - The company has undergone significant changes, including the resolution of past legal issues and a restructuring of its business model, allowing for increased product releases and investment activities [4][8]. - The company has expanded its product offerings beyond traditional titles like "Legend" and "Miracle," venturing into various game genres [4]. Product Portfolio - The core revenue still relies on retro-themed games, which include titles like "Original Legend," "Blood of the Battle," and "Angel War," contributing significantly to the revenue base [5]. - The company has introduced a new information service that has grown rapidly, accounting for 18% of total revenue, primarily from the 996 game box and Cangyue Island platform [7]. Strategic Partnerships - The company has established a strong partnership with Zhejiang Shenghe, a game developer, which has been a significant contributor to its success, particularly with the "Legend" series [8]. - The company has strengthened its ties with Century Huatong and Zhongxu Future through cross-shareholding and strategic cooperation agreements, enhancing its position in the "Legend" IP ecosystem [10][12]. Legal and Regulatory Developments - The company has been involved in long-standing copyright disputes over the "Legend" IP, which have recently seen resolution, allowing for a more stable business environment [9]. - A recent arbitration ruling ordered a compensation of 224.5 million yuan from a Korean company, further solidifying the company's legal standing [12]. Market Expansion - The company has made strides in international markets, with overseas revenue reaching 375 million yuan, a year-on-year increase of over 220% [22]. - The company has diversified its product line, including various genres and IP adaptations, to enhance its market presence and appeal [13][19].