Core Insights - The Chinese gaming market's actual sales revenue for Q3 2025 reached 88.026 billion yuan, marking a quarter-on-quarter growth of 6.96% but a year-on-year decline of 4.08% [1] - Among 23 selected A-share gaming companies, 56.52% reported revenue growth, while 73.91% achieved profitability in Q3 2025 [1] - Century Games, a subsidiary of Century Huatong, significantly contributed to its parent company's revenue growth, with Q3 revenue reaching 10.016 billion yuan, a year-on-year increase of 60.19% [1] Market Segmentation - The client game market generated 20.29 billion yuan in Q3 2025, with a quarter-on-quarter increase of 16.05% and a year-on-year increase of 19.88% [1] - The mobile game market achieved 64.389 billion yuan in revenue, reflecting a quarter-on-quarter growth of 4.39% but a year-on-year decline of 1% [1] Company Performance - Century Huatong reported a revenue of 27.223 billion yuan for the first three quarters of 2025, surpassing its total revenue for the previous year, with a net profit of 4.357 billion yuan, up 141.65% [1] - 13 out of 23 gaming companies reported positive revenue growth, while 3 companies turned losses into profits, including Perfect World, Icefire Network, and Xinghui Entertainment [1] - 37 Interactive Entertainment maintained its position as the second-largest A-share gaming company, with Q3 revenue of 3.975 billion yuan, a year-on-year decline of 3.23% [1] New Product Success - Gigabit's new games, including "Wen Jian Chang Sheng" and "Zhang Jian Chuan Shuo," have been successful, contributing to a revenue of 4.486 billion yuan for the first three quarters, a year-on-year increase of 59.17% [2] - Giant Network's new game "Supernatural Action Group" performed well, leading to a Q3 revenue of 1.768 billion yuan, a year-on-year increase of 51.84% [2] - Icefire Network successfully turned around its performance, achieving a net profit of 500 million yuan in the first three quarters after a strategic shift in its marketing approach [2]

Investment Rating - The investment rating for the media and internet industry is "Positive" and maintained [10] Core Insights - The media and internet industry continues its recovery trend, with revenue for the first three quarters of 2025 reaching 404.8 billion yuan, a year-on-year increase of 5.72%. The net profit attributable to shareholders was 32.6 billion yuan, up 43.87% year-on-year [2][5][21][24]. Summary by Sections Overall Industry Performance - The media and internet sector achieved a revenue of 404.8 billion yuan in the first three quarters of 2025, reflecting a 5.72% year-on-year growth. In Q3 2025, the sector's revenue was 139 billion yuan, marking an 8.81% year-on-year increase and a 2.91% quarter-on-quarter growth [5][21][24]. Gaming Sector - The gaming sector saw a strong performance with revenue of 27.1 billion yuan in Q3 2025, representing a 35.2% year-on-year increase. The net profit for the gaming sector reached 5.18 billion yuan, up 136% year-on-year. This sector has experienced ten consecutive quarters of year-on-year revenue growth since Q2 2023 [6][40][44]. Internet Sector - The internet sector's revenue in Q3 2025 was 9.1 billion yuan, showing a slight decline of 0.8% year-on-year. The net profit for this sector was 660 million yuan, down 15.3% year-on-year. However, there are signs of recovery, particularly in advertising revenue for key players [6][52]. Marketing Sector - The advertising sector experienced a weak recovery, with revenue of 49.38 billion yuan in Q3 2025, a 7.9% year-on-year increase. The net profit was 1.97 billion yuan, down 7.6% year-on-year, indicating some pressure on profitability [7][31]. Film and Television Sector - The film industry showed stable performance with a total box office of 12.718 billion yuan in Q3 2025, a 17.05% year-on-year increase. The cinema sector's revenue was 5.7 billion yuan, up 1.7% year-on-year, while the film production sector faced challenges with a revenue of 3.7 billion yuan, down 5% year-on-year [7][26]. Publishing Sector - The overall book retail market continued to experience negative growth, with a revenue of 31.05 billion yuan in Q3 2025, down 4.9% year-on-year. However, the publishing sector's net profit was 2.47 billion yuan, reflecting an 11.2% year-on-year increase, largely due to tax incentives [8][34].

Core Insights - The report from Guohai Securities indicates that Jibite's net profit attributable to shareholders for Q1 to Q3 of 2025 reached 1.214 billion yuan, representing a year-on-year increase of 84.66% [1] - In Q3 alone, the net profit attributable to shareholders was 569 million yuan, showing a year-on-year growth of 307.70% and a quarter-on-quarter increase of 57.58% [1] - The company's performance is at the upper end of its forecast, with a focus on the launch of new products in different regions [1] Financial Performance - As of the end of Q3 2025, the company had an unamortized balance of recharge and in-game items totaling 635 million yuan, an increase of 157 million yuan from the end of 2024 [1] - This increase is primarily due to the new product launches in 2025, including "Legend of the Staff (Mainland Version)," "Treasure Hunter," "Legend of the Staff (Overseas Version)," and "Sword of Immortality (Mainland Version)" [1] Product Development and Future Outlook - The company has a rich product matrix, and with the upcoming launches in Q4 2025 and 2026, including "Sword of Immortality" in Hong Kong, Macau, Taiwan, and South Korea, as well as "Legend of the Staff" in overseas regions, profit contributions are expected to increase [1] - The already launched product "Legend of the Staff" is anticipated to contribute to revenue throughout 2026, which is expected to enhance the company's operating profit year-on-year [1] Revenue and Profit Projections - The projected operating revenue for the company from 2025 to 2027 is 6.187 billion yuan, 6.805 billion yuan, and 7.214 billion yuan, respectively [1] - The net profit attributable to shareholders is expected to be 1.695 billion yuan, 2.028 billion yuan, and 2.287 billion yuan for the same period, with corresponding price-to-earnings ratios of 19.21x, 16.06x, and 14.24x [1] - The rating for the company is maintained at "Buy" [1]

Industry Overview - The gaming industry continues to show a growth trend, with significant performance from leading companies. In Q3 2025, industry revenue reached 30.362 billion yuan, representing a year-on-year increase of 28.6% and a quarter-on-quarter increase of 9.48%. The industry's profit also saw a substantial year-on-year growth of 112%, reaching 5.777 billion yuan, with a profit margin of 19% [1][2]. Key Companies Performance - Leading companies such as ST Huatuo, Sanqi Interactive, Giant Network, Kaiying Network, and G-bits reported quarterly net profits exceeding 500 million yuan, all demonstrating growth rates above 35% [1][2]. - Kaiying Network achieved a net profit of 630 million yuan in Q3 2025, marking a record high for a single quarter and a year-on-year increase of 34.5%. The company's gross profit margin improved to 84.2%, indicating a higher proportion of high-margin business [3]. - Giant Network reported a revenue of 2.15 billion yuan in Q3 2025, a 101.5% increase from Q2 2025, driven by the performance of its key product "Supernatural Action Group" [3]. - G-bits recorded a net profit of 569 million yuan in a single quarter, a remarkable year-on-year increase of 307.7%. The game "Staff Sword Legend" generated a total revenue of 1.166 billion yuan in the first three quarters of 2025 [4]. - ST Huatuo's successful overseas product "Whiteout Survival" has shown stable performance in both domestic and international markets, while its new product "Kingshot" has validated the feasibility of the "casual + SLG" model [4]. Market Dynamics - The issuance of game licenses has stabilized, with a record number of domestic licenses issued in 2025, totaling 1,354, surpassing the entire year of 2024 [2]. - The actual sales revenue of the Chinese gaming market from January to September 2025 increased by 7.11% year-on-year, with a continuous quarter-on-quarter growth, driven by excellent product performance [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][12] Core Insights - The company's Q3 performance fell within the upper range of its forecast, with a significant year-on-year net profit growth of 307.70% driven by new game releases [7] - The company is focusing on the global launch of its self-developed products, with new regions for "Wanjian Changsheng" and "Zhangjian Chuanqi" expected to contribute to profit growth in 2025 and 2026 [11] - The company has a robust product pipeline, with anticipated revenue growth and profitability improvements due to new product launches and existing product performance [11] Financial Performance Summary - For the first three quarters of 2025, the company achieved a total revenue of 44.86 billion yuan, representing a year-on-year increase of 59.17%, and a net profit of 12.14 billion yuan, up 84.66% [8] - In Q3 2025, the company reported a revenue of 19.68 billion yuan, a year-on-year increase of 129.19%, and a net profit of 5.69 billion yuan, reflecting a year-on-year growth of 307.70% [8] - The company plans to distribute a cash dividend of 6 yuan per share, totaling 4.31 billion yuan, which accounts for 75.67% of the net profit for the period [8] Future Projections - The company is projected to achieve revenues of 61.87 billion yuan in 2025, 68.05 billion yuan in 2026, and 72.14 billion yuan in 2027, with corresponding net profits of 16.95 billion yuan, 20.28 billion yuan, and 22.87 billion yuan [11][12] - The expected growth rates for revenue and net profit are 67% and 79% respectively for 2025, with a gradual decline in growth rates in subsequent years [10][11]

Core Viewpoint - The gaming industry shows positive policy support and strong performance from new products, leading to an overall optimistic outlook for the sector [1]. Industry Summary - In Q3 2025, the gaming industry's revenue reached 30.362 billion yuan, marking a year-on-year growth of 28.6% and a quarter-on-quarter increase of 9.48%. The industry's profit also saw a significant year-on-year increase of 112%, reaching 5.777 billion yuan, with a profit margin of 19% [1]. - The issuance of game licenses remains stable, with a record number of domestic licenses issued. In the first nine months of 2025, the actual sales revenue of the Chinese gaming market grew by 7.11% year-on-year, driven by strong product performance [1]. Company Performance - **Kying Network**: In Q3 2025, the net profit reached 630 million yuan, a new quarterly high with a year-on-year growth of 34.5%. The gross profit margin improved to 84.2%, indicating a higher contribution from high-margin products [2]. - **Giant Network**: The company's revenue for Q3 2025 was 2.15 billion yuan, a 101.5% increase from Q2 2025, driven by the success of the product "Supernatural Action Group" [2]. - **G-bits**: The net profit for the quarter was 569 million yuan, showing a remarkable year-on-year growth of 307.7%. The product "Staff Sword Legend" generated significant revenue, contributing to the company's strong performance [2]. - **ST Huatuo**: The successful overseas product "Whiteout Survival" performed well in both domestic and international markets, while the new product "Kingshot" validated the feasibility of the "casual + SLG" model [2].

Investment Rating - The investment rating for the company is "Buy" (maintained) [3][6]. Core Insights - The company reported a strong Q3 performance with total revenue of 1.97 billion yuan, a year-on-year increase of 129%, and a net profit attributable to shareholders of 570 million yuan, up 308% year-on-year, exceeding market expectations [6]. - The new game "杖剑" (Zhang Jian) has shown better-than-expected sustainability in both domestic and overseas markets, contributing significantly to revenue growth [6]. - The company has raised its earnings forecast based on the strong performance of new titles, projecting revenues of 6.27 billion yuan, 7.16 billion yuan, and 7.78 billion yuan for 2025, 2026, and 2027 respectively [6]. Financial Data and Profit Forecast - Total revenue (million yuan): - 2024: 3,696 - 2025E: 6,265 - 2026E: 7,156 - 2027E: 7,788 - Year-on-year growth rates (%): - 2025E: 69.5 - 2026E: 14.2 - 2027E: 8.8 - Net profit attributable to shareholders (million yuan): - 2025E: 1,779 - 2026E: 2,008 - 2027E: 2,310 - Gross margin (%): - 2025E: 93.4 - 2026E: 88.2 - 2027E: 89.9 - Return on equity (ROE %): - 2025E: 29.8 - 2026E: 30.2 - 2027E: 31.0 [2][6][8]. Market Data - Closing price (yuan): 452.01 - Market capitalization (million yuan): 32,563 - Dividend yield (%): 2.68 - Price-to-earnings ratio (PE): - 2026E: 16 - 2027E: 14 [3][6].

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 602.00 CNY, while the current price is 472.98 CNY [6][19]. Core Insights - The company's products such as "Zhang Jian Chuan Shuo" and "Dao You Lai Wa Bao" have shown outstanding performance and sustainability, expected to continue contributing to revenue in 2026. The expansion of "Zhang Jian" and "Wen Jian" in overseas markets, along with the launch of "Jiu Mu Zhi Ye," will further drive growth [2][11]. - The third quarter results are at the upper end of forecasts, with a cash dividend of 6 CNY per share announced. For the first three quarters of 2025, the net profit attributable to the parent company reached 1.214 billion CNY, a year-on-year increase of 84.66%, with a single-quarter net profit of 569 million CNY, up 307.7% [11][12]. Financial Summary - Total revenue is projected to increase from 4,185 million CNY in 2023 to 9,257 million CNY in 2027, reflecting a compound annual growth rate (CAGR) of approximately 29.5% [4][12]. - Net profit attributable to the parent company is expected to rise from 1,125 million CNY in 2023 to 2,476 million CNY in 2027, indicating a CAGR of about 30.5% [4][12]. - Earnings per share (EPS) are forecasted to grow from 15.62 CNY in 2023 to 34.36 CNY in 2027 [4][12]. Product Performance - "Zhang Jian Chuan Shuo" generated a total revenue of 1.166 billion CNY in the mainland market for the first three quarters, maintaining a position within the top 40 of the iOS game sales chart. "Dao You Lai Wa Bao," launched in May, has contributed 316 million CNY by the end of September [11][12]. - The overseas revenue for the first nine months reached 588 million CNY, a year-on-year increase of 59.46%, with "Zhang Jian Chuan Shuo (Overseas Version)" contributing 478 million CNY since its launch on July 15, 2025 [11][12]. Future Expectations - Anticipation for the launch of "Wen Jian Chang Sheng" and "Zhang Jian Chuan Shuo" in overseas markets, as well as the strategic reserve of the SLG mobile game "Jiu Mu Zhi Ye," which is expected to contribute to 2026's performance [11][12].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Insights - The company reported Q3 2025 revenue of 1.97 billion yuan, a year-on-year increase of 129.2%, and a net profit attributable to shareholders of 570 million yuan, up 307.7% year-on-year, closely aligning with the upper limit of the forecast range [2][4]. - The new game "Staff Sword Legend" performed steadily, and the overseas game market showed significant contributions [5][10]. - The company is focusing on the subsequent revenue trends of core products and the testing and launch schedule of new products [10]. Summary by Sections Financial Performance - In Q3 2025, the company achieved revenue of 1.97 billion yuan, with a net profit of 570 million yuan and a non-recurring net profit of 560 million yuan, reflecting year-on-year increases of 129.2%, 307.7%, and 273.7% respectively [2][4]. - The new game "Staff Sword Legend" generated a revenue of 742 million yuan in Q3, while its overseas version contributed 478 million yuan [10]. Game Performance - The new game "Staff Sword Legend" continues to contribute incremental revenue, with its overseas version performing well, leading to a significant increase in overseas revenue to 387 million yuan in Q3 [10]. - The self-developed mini-program game "Dao You Lai Wa Bao" has contributed over 300 million yuan in revenue since its launch in May [10]. Cost and Expenses - Due to the contribution from multiple new games, the company’s unamortized recharge and item balance as of September 30, 2025, increased significantly to 635 million yuan from 567 million yuan [10]. - The sales expenses increased due to the launch of new games, with a total of 610 million yuan in Q3, reflecting a year-on-year increase of 360 million yuan [10]. Shareholder Returns - The company has actively promoted shareholder returns, with a proposed cash dividend of 4.31 billion yuan, accounting for approximately 75.6% of net profit [10]. Profit Forecast - The company expects net profits attributable to shareholders to be 1.69 billion yuan and 1.90 billion yuan for 2025 and 2026, respectively, corresponding to PE ratios of 20.6 and 18.3 times [10].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 514.14 CNY, reflecting a P/E ratio of 22 times for 2025 [3][5]. Core Insights - The new game "Zhang Jian Chuan Shuo" is expected to maintain high revenue in Q4, while the upcoming SLG game "Jiu Mu Zhi Ye" is anticipated to contribute additional revenue in 2026. The projected net profits for 2025, 2026, and 2027 are 1.684 billion, 1.805 billion, and 2.147 billion CNY respectively, reflecting significant growth due to the stability of "Zhang Jian Chuan Shuo" and the better-than-expected performance of "Dao You Lai Wa Bao" [3][9]. Financial Performance Summary - **Revenue**: The company reported revenue of 4,185 million CNY in 2023, with a projected increase to 6,297 million CNY in 2025, representing a growth rate of 70.4% [4][10]. - **Net Profit**: The net profit attributable to the parent company is expected to rise from 1,125 million CNY in 2023 to 1,684 million CNY in 2025, marking a growth of 78.2% [4][10]. - **Gross Margin**: The gross margin is projected to improve from 88.5% in 2023 to 92.8% in 2025 [4][10]. - **Earnings Per Share (EPS)**: The EPS is expected to increase from 15.62 CNY in 2023 to 23.37 CNY in 2025 [4][10]. Game Performance Insights - "Zhang Jian Chuan Shuo" has shown stable performance since its launch, consistently ranking in the top 15 of sales charts. Despite a slight decline in monthly revenue, it is expected to contribute significantly in Q4 [9]. - The derivative game "Dao You Lai Wa Bao" has successfully recalled lost users from "Wen Dao," contributing an additional 316 million CNY in revenue since its launch [9]. - The upcoming SLG game "Jiu Mu Zhi Ye" is positioned in a competitive market but has unique features that may allow it to capture market share if successful [9].