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].

Core Insights - Century Huatuo has shown remarkable performance in the gaming industry in 2025, with a revenue of 17.2 billion yuan, representing a year-on-year increase of 85.5%, and a net profit of 2.656 billion yuan, up 129.33% [1] - The company has achieved a non-deductible net profit of 2.586 billion yuan, reflecting a growth of 124.43%, and operating cash flow has surged by 107.4% to 3.918 billion yuan, indicating strong financial health [1] - Century Huatuo's revenue has consistently increased for nine consecutive quarters, validating its dual-driven strategy of "global layout + core IP cultivation" [1] Century Games Performance - Century Games has distinguished itself with its self-research capabilities and innovative "SLG+X" model, leading to the successful launch of popular games like "Whiteout Survival" and "Kingshot" [2] - "Whiteout Survival" combines survival themes with SLG gameplay, while "Kingshot" merges medieval kingdom settings with tower defense and SLG strategy elements, both achieving top rankings in the July 2025 mobile game revenue chart [2] Domestic Market Strength - Diandian Interactive has solidified its position in the ice and snow-themed game sector with the success of "Endless Winter," which has consistently ranked high on popular game charts [4] - The launch of "Bengben Kingdom" has further diversified Diandian Interactive's product offerings, expanding its audience in the domestic market [4] - Shengqu Games has also reported stable revenue growth, leveraging classic IPs like "Legend of Blood" and "Dragon Valley" through content iteration and user engagement strategies [4] Technological Advancements - Century Huatuo has made significant strides in technology application, particularly in AI, enhancing game development and operational efficiency [6] - The company has implemented AI tools to improve art resource creation, optimize game content generation, and enhance quality control and customer service [6] - Clear strategic positioning and resource allocation among subsidiaries have ensured collaborative growth across various business segments [6]

Core Insights - The article discusses the historical significance of Shengda Network and its transformation into Shengqu Games, highlighting the emotional connection of the "Sheng Warriors" to the company's legacy and their aspirations for its future [1][4][6]. Group 1: Company History and Transformation - Shengda Network, founded by Chen Tianqiao, acquired the rights to the game "The Legend of Mir 2" in 2001, which significantly changed the company's trajectory and reshaped entertainment for Chinese youth [2][4]. - The success of games like "Bubble Hall" and "Adventure Island" led to Shengda's IPO on NASDAQ in 2004, establishing it as a major player in the gaming industry [4][6]. - The rebranding of Shengda Games to Shengqu Games in 2019 marked a formal separation from Shengda Network, although it retained significant brand value and user base [5][6]. Group 2: Leadership and Vision - Peng Cheng's return as CEO of Shengqu Games in 2024 is seen as a symbolic "Sheng Warrior return," aiming to revive the company's former glory and complete unfinished business [1][6]. - Peng Cheng emphasizes the need for a cultural and strategic shift within the company, focusing on innovation and revitalizing old IPs to drive growth [6][24]. Group 3: Financial Performance - Century Huatong's mid-year performance forecast indicates a revenue increase of approximately 83% to around 17 billion yuan, with a projected net profit growth of 107% to 159% [6][24]. - Shengqu Games has maintained a positive growth trajectory by refining gameplay and content, successfully rejuvenating the popularity and commercial value of its legacy IPs [6][24]. Group 4: Challenges and Strategies - The company faces challenges such as an aging workforce and the need for talent rejuvenation, with plans to lower the average age of employees while retaining experienced staff [18][19]. - Peng Cheng's strategy includes consolidating operations and focusing on core competencies, particularly leveraging existing IPs before exploring new product lines [24][25]. Group 5: Market Trends and Future Outlook - The gaming industry is evolving, with a focus on "evergreen games" and the challenge of reviving classic IPs while appealing to modern players [28][29]. - The company aims to balance nostalgia with contemporary gaming preferences, ensuring that new versions of classic games resonate with both old and new audiences [28][29].

Core Viewpoint - Zhongxu Future (09890) has seen a stock price increase of over 3%, currently trading at 13.98 HKD with a transaction volume of 67.1 million HKD, following the announcement of strategic partnerships to enhance its gaming ecosystem [1] Group 1: Business Developments - Jiangxi Tanwan Information Technology Co., Ltd., a subsidiary of Zhongxu Future, has deepened its business cooperation with Hangzhou Tianqiong Interactive Network Technology Co., Ltd. by acquiring licenses for two classic IPs: "Blood Legend" and "Legend World" [1] - A cooperation agreement has been signed with Zhejiang Xianqu Interactive Network Technology Co., Ltd., a subsidiary of Kaiying Network (002517), to officially enter the gaming box section operated by Kaiying Network, establishing a "Tanwan Games" star brand section [1] Group 2: Strategic Implications - This collaboration represents an extension of the long-term partnership between Zhongxu Future (Tanwan) and Kaiying Network, marking a comprehensive upgrade of the Legend IP ecosystem [1] - The entry of Tanwan Games is expected to provide a more convenient content access point for a large user base and will utilize integrated marketing strategies, including signing celebrity endorsements, to create a multi-dimensional marketing approach combining "celebrity IP + game products" [1] - The community-oriented operation advantages of the gaming box will further enhance brand influence and effectively increase market penetration of the game products [1]

Core Viewpoint - Zhongxu Future (09890) has seen a stock price increase of over 3%, currently trading at 13.98 HKD with a transaction volume of 67.1 million HKD, following the announcement of deepened business cooperation with Jiangxi Tanwan Information Technology Co., Ltd. and Hangzhou Tianqiong Interactive Network Technology Co., Ltd. [1] Group 1 - The collaboration involves obtaining licenses for two classic IPs, "Blood Legend" and "Legend World," enhancing the IP ecosystem [1] - Zhongxu Future has signed a cooperation agreement with Zhejiang Xianqu Interactive Network Technology Co., Ltd., a subsidiary of Kaiying Network, to officially enter the game box section operated by Xianqu Interactive [1] - The partnership aims to provide a more convenient content entry for a large user base and will utilize integrated marketing strategies, including signing celebrity endorsements, to enhance product market penetration [1] Group 2 - The entry of Tanwan Games into the game box will leverage community operation advantages to further expand brand influence [1] - This collaboration is seen as an extension of the long-term partnership between Zhongxu Future (Tanwan) and Kaiying Network, representing a comprehensive upgrade of the legendary IP ecosystem [1]

Core Viewpoint - The gaming sector has seen a significant surge this year, with a cumulative increase of nearly 40%, largely driven by the strong performance of leading company ST Huatuo, whose stock price has risen over 163% year-to-date, surpassing the overall gaming sector index growth [1][2]. Group 1: Company Performance - ST Huatuo's market capitalization has exceeded 100 billion yuan, indicating its strong position in the gaming industry [1]. - The company has shown consistent growth, with a projected net profit of 2.4 billion to 3 billion yuan for the first half of the year, representing a year-on-year increase of 107.20% to 159% [2]. - The dynamic price-to-earnings ratio of ST Huatuo stands at 18.67 times, making it one of the most undervalued companies in the gaming sector [2][3]. Group 2: Key Growth Drivers - ST Huatuo holds three key advantages: Didi Interactive, Shengqu Games, and its promising computing power business, which contribute to its ongoing value reassessment [5][10]. - Didi Interactive is recognized as a "global hit maker," with expected revenues of approximately 15 billion yuan in 2024, accounting for nearly 70% of the group's total revenue [6][7]. - Shengqu Games has a rich history of nearly 25 years in game development and operation, having launched numerous successful titles that continue to perform well in the market [8][9]. Group 3: Market Position and Future Outlook - The classic IPs owned by Shengqu Games, such as "Legend" and "Dragon Nest," have a large fan base and significant potential for further development, providing a stable revenue stream for ST Huatuo [9]. - The computing power business is positioned to benefit from the exponential growth in demand for AI and digital economy resources, with ongoing investments in data center projects [10]. - With the combination of high growth from Didi Interactive, a solid domestic foundation from Shengqu Games, and the expansive potential of the computing power business, ST Huatuo's market value may continue to rise, attracting more investors [10].

Group 1 - The collaboration between Zhongxu Future (Ganwan) and Kaiying Network marks a significant enhancement of the Legend IP ecosystem, with the introduction of classic IPs such as "Blood Legend" and "Legend World" [1][2] - Ganwan Games, a well-known game distribution platform in China, has successfully developed several phenomenon-level games in the Legend genre, establishing a strong brand influence in this field [1][2] - The partnership aims to leverage community-based operations of the game box platform to enhance brand influence and provide a more convenient content entry for a large user base [2] Group 2 - The integration of Ganwan Games into Kaiying Network's game box will utilize a multi-faceted marketing approach, combining "star IP + game products" to enhance market penetration [2] - Both companies will share resources and collaborate on traffic sharing, content co-creation, and ecosystem building to increase the market presence of the Legend IP [2] - Future efforts will focus on user growth, content innovation, and the derivative value of IP, reinforcing the leading position of Legend games in the market [2]

Group 1 - Zhongxu Future (Tanwan) has deepened its business cooperation with Hangzhou Tianqiong Interactive Network Technology, obtaining licenses for classic IPs "Blood Legend" and "Legend World" [1] - The partnership with Zhejiang Xianqu Interactive Network Technology, a subsidiary of Kaiying Network, allows Tanwan to officially enter the game box section operated by Xianqu Interactive, creating a "Tanwan Games" star brand area [1] - Tanwan Games, a well-known game distribution platform in China, focuses on the refined operation and innovative promotion of legendary games, successfully launching several hit products and establishing a strong brand influence in the legendary game sector [1] Group 2 - This collaboration represents an extension of the long-term partnership between Zhongxu Future (Tanwan) and Kaiying Network, marking a comprehensive upgrade of the legendary IP ecosystem [2] - The entry of Tanwan Games will provide a more convenient content entry for its large user base and enhance product market penetration through integrated marketing strategies like signing celebrity endorsements [2] - Both companies will share resources and enhance the market presence of legendary IPs through traffic sharing, content co-creation, and ecological construction, aiming to improve user growth and content innovation [2]

Core Viewpoint - The collaboration between Zhejiang Xianqu Interactive Entertainment Network Technology Co., Ltd. and Zhejiang Tianqiong Interactive Network Technology Co., Ltd. has been deepened, focusing on the promotion and community building around the "Legend" IP games [1] Group 1 - The partnership builds on the existing exclusive licensing of game boxes, enhancing the operational capabilities for the "Legend" IP [1] - The "Legend" box will feature a dedicated brand area for showcasing and promoting derivative games such as "Hot Blood Legend" and "Legend World" [1] - The collaboration aims to create a community ecosystem for users through game live streaming and other services [1]

Group 1 - The report highlights that government subsidies stimulated sales in Q2, leading to continued positive revenue growth. The competitive landscape in the small home appliance sector has improved, driving profit recovery, while leading players in the major appliance sector are helping to concentrate market share, suggesting an increase in holdings [2][29]. - The report recommends focusing on two main investment lines: 1) The improvement in the competitive landscape of small home appliances brings profit elasticity, particularly in the vacuum cleaner sector, which has high growth potential and low penetration rates. The kitchen small appliances sector is gradually returning to growth after two years of decline, with a significant increase in sales during the 618 shopping festival [2][29]. - The report indicates that leading brands in the white goods sector are dominating the current price competition, leading to increased industry concentration. The export performance of major appliance manufacturers is expected to gradually recover as uncertainties around tariff policies are clarified [3][31]. Group 2 - The company Salted Fish's differentiated product, the konjac sauce, achieved over 100 million in monthly sales within 16 months, setting a record for the fastest-selling snack product. The konjac snack segment is still in a high-growth phase, supported by a strong supply chain and channel capabilities [7][8]. - The company is expanding its overseas market presence with its own brand "Mowon," developing localized products based on local tastes, which is expected to drive growth in international markets [8][9]. - The report maintains an "increase holdings" rating for the company, projecting EPS of 2.99, 3.73, and 4.63 for 2025-2027, with a target price of 100.00 yuan based on strong performance in konjac products [7][8].