Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The recovery of Blizzard games is expected to drive growth, with new mobile games like "Marvel Secret Wars" and "Destiny Stars" anticipated to launch [3] - The company's projected net profit for 2025-2027 is estimated at 36 billion, 38.1 billion, and 41.5 billion CNY respectively, reflecting an upward adjustment in gross margin and investment income [3] - The target price is set at 210.13 HKD / 193.03 CNY, indicating a potential upside from the current price [3] Financial Performance Summary - For 2023A, the company reported total revenue of 103,468 million CNY, with a year-on-year growth of 7.23% [4] - The operating profit for 2023A was 27,709 million CNY, showing a significant year-on-year increase of 41.17% [4] - The net profit attributable to the parent company for 2023A was 29,417 million CNY, reflecting a year-on-year growth of 44.64% [4] - The gross margin for 2023A was 60.95%, with a projected increase to 64.59% by 2027E [4] - The net profit margin for 2023A was 28.43%, expected to rise to 31.00% by 2027E [4] Revenue Breakdown - In Q1 2025, total revenue reached 28,829 million CNY, with a year-on-year increase of 7.4% [9] - The revenue from games and related value-added services in Q1 2025 was 24,048 million CNY, up 12.1% year-on-year [9] - Mobile game revenue in Q1 2025 was 15,359 million CNY, down 4.4% year-on-year, while PC game revenue surged by 85% to 8,088 million CNY [9] Future Projections - The company expects Q2 2025 mobile game revenue to face less year-on-year pressure, while PC game revenue is anticipated to remain strong [9] - The projected revenue for 2025E is 114,089 million CNY, with a year-on-year growth of 8.35% [10] - The estimated operating profit for 2025E is 36,475 million CNY, reflecting a growth rate of 23.29% [10]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company is expected to see growth driven by the recovery of Blizzard games and the upcoming launches of mobile games such as "Marvel Secret Wars" and "Destiny Stars" [3] - The profit forecast for the company from 2025 to 2027 is adjusted to 36 billion, 38.1 billion, and 41.5 billion CNY respectively, reflecting an increase in gross margin and investment income while reducing the sales expense ratio [3] Financial Summary - The company's revenue for 2023 is projected at 103.468 billion CNY, with a year-on-year growth of 7.23% [4] - Operating profit for 2023 is estimated at 27.709 billion CNY, showing a significant year-on-year increase of 41.17% [4] - The net profit attributable to the parent company for 2023 is forecasted at 29.417 billion CNY, representing a year-on-year growth of 44.64% [4] - The earnings per share (EPS) for 2023 is expected to be 9.29 CNY [4] - The gross margin is projected to be 60.95% for 2023, with a gradual increase to 64.59% by 2027 [4] - The net margin is expected to be 28.43% in 2023, with a slight increase to 31.00% by 2027 [4] Revenue Breakdown - Total revenue for Q1 2025 is reported at 28.829 billion CNY, with a year-on-year growth of 7.4% [9] - Revenue from games and related value-added services in Q1 2025 is 24.048 billion CNY, reflecting a year-on-year increase of 12.1% [9] - Mobile game revenue in Q1 2025 is 15.359 billion CNY, showing a year-on-year decline of 4.4% [9] - PC game revenue in Q1 2025 is 8.088 billion CNY, with a substantial year-on-year increase of 85% [9] Valuation - The target price for the company's stock is set at 210.13 HKD, with a current share price of 186.6 HKD [5] - The company is valued using a Sum-of-the-Parts (SOTP) approach, with the gaming segment accounting for 94% of the total valuation [11]

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company's net profit is expected to grow significantly due to the recovery of Blizzard games and the anticipated launch of new mobile games such as "Marvel Secret Wars" and "Destiny Stars" [3] - The profit forecast for the company from 2025 to 2027 is adjusted to 36 billion, 38.1 billion, and 41.5 billion CNY respectively, reflecting an increase in gross margin and investment income while reducing the sales expense ratio [3] Financial Summary - The company's revenue for 2023 is projected at 103.468 billion CNY, with a year-on-year growth of 7.23% [4] - Operating profit for 2023 is estimated at 27.709 billion CNY, showing a significant year-on-year increase of 41.17% [4] - The net profit attributable to the parent company for 2023 is forecasted at 29.417 billion CNY, representing a year-on-year growth of 44.64% [4] - The earnings per share (EPS) for 2023 is expected to be 9.29 CNY [4] - The gross margin is projected to be 60.95% for 2023, with a gradual increase to 64.59% by 2027 [4] - The net margin is expected to be 28.43% in 2023, with a slight increase to 31.00% by 2027 [4] Revenue Breakdown - Total revenue from games and related value-added services is expected to reach 240.5 billion CNY in Q1 2025, with a year-on-year growth of 12.1% [9] - Mobile game revenue is projected at 153.6 billion CNY in Q1 2025, showing a year-on-year decrease of 4.4% but a quarter-on-quarter increase of 14.5% [9] - PC game revenue is expected to be 80.9 billion CNY in Q1 2025, reflecting a substantial year-on-year growth of 85% [9] Valuation - The target price for the company's stock is set at 210.13 HKD, equivalent to 193.03 CNY, based on a sum-of-the-parts (SOTP) valuation method [3][11] - The company is valued at a price-to-earnings (P/E) ratio of 18 for 2025, decreasing to 13 by 2027 [4][11]