Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook on its performance in the mobile gaming sector and information services [4]. Core Views - The company's contract liabilities have significantly increased, providing a solid foundation for future growth. As of the first three quarters, contract liabilities amounted to approximately 351 million yuan, a year-on-year increase of 94.78%, primarily due to the rise in deferred revenue [2]. - The company has successfully obtained licenses for three games and launched multiple titles, including "荒野守则," "熊猫大作战," and "黑猫警长：守护," which have performed well in various markets [2]. - Progress in the company's gaming box initiative is promising, with over 25 high-quality games entering the platform, and plans to introduce over 100 more, enhancing the content ecosystem [3]. Financial Performance Summary - For the first three quarters, the company reported a revenue of 4.075 billion yuan, a year-on-year increase of 3.75%, and a net profit attributable to shareholders of 1.583 billion yuan, up 23.7% [1]. - The third quarter alone saw revenues of 1.497 billion yuan, reflecting a 9.08% year-on-year growth, with net profit reaching 633 million yuan, a 34.51% increase [1]. - The company forecasts net profits for 2025-2027 to be approximately 1.967 billion yuan, 2.362 billion yuan, and 2.725 billion yuan, respectively, with corresponding P/E ratios of 25.58, 21.30, and 18.46 [4][6].

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company is leveraging AI and IP to create an ecological matrix that drives stable revenue growth through multi-level optimization [5] - The company has shown strong performance in its gaming segment, with a focus on expanding its product matrix through AI and IP integration [5] Financial Data and Valuation - Projected revenue for 2023 is 4,295 million, with a year-on-year growth of 15.3%. Revenue is expected to reach 5,118 million in 2024, 6,164 million in 2025, 7,182 million in 2026, and 8,350 million in 2027 [3][6] - Projected net profit for 2023 is 1,462 million, with a year-on-year growth of 42.6%. Net profit is expected to be 1,628 million in 2024, 2,157 million in 2025, 2,565 million in 2026, and 3,102 million in 2027 [3][6] - The gross margin is projected to be 83.5% in 2023, gradually decreasing to 81.7% by 2027 [3][6] - The company’s P/E ratio is expected to decrease from 34.4 in 2023 to 16.2 in 2027, indicating an improving valuation over time [3][6] Recent Performance - In the first three quarters of 2025, the company achieved a revenue of 40.75 billion, a year-on-year increase of 3.75%, and a net profit of 15.83 billion, up 23.70% year-on-year [5] - The company reported a significant increase in net profit for Q3 2025, reaching 6.33 billion, which is a 34.51% increase year-on-year [5] Strategic Initiatives - The company is expanding its product offerings with new game releases and AI applications, including the AI game development platform "SOON" and various IP-based mobile games [5] - The "Legendary Box" initiative aims to transform the company from a single product competitor to an ecological operator, enhancing its market position [5]

Core Viewpoint - The article highlights the sustainable development path of Kaiying Network, emphasizing its commitment to AI innovation, cultural empowerment for overseas expansion, and shareholder returns amidst the transformation of the gaming industry during the "14th Five-Year Plan" period [1]. Group 1: Innovation and Product Development - Kaiying Network has increased its R&D investment, totaling 1.976 billion yuan from 2021 to 2024, focusing on a diverse product matrix including RPG, SLG, and anime genres [3]. - The company has revitalized its classic IP "Legend" and launched new titles like "Dragon Valley World," which quickly gained user popularity [3]. - Kaiying Network has multiple upcoming projects and has successfully obtained several game licenses, laying a solid foundation for future growth [3]. Group 2: AI and Cross-Industry Integration - The company has developed an AI tool platform "SOON" that significantly shortens game development cycles and enhances production efficiency [5]. - AI applications such as "Warm Star Valley Dream Journey" and "EVE," along with AI+hardware products like DPVR AI Glasses, have expanded new consumer scenarios beyond traditional gaming [5]. Group 3: Cultural Expansion and Revenue Growth - Kaiying Network has actively engaged in cultural trade, with overseas revenue accounting for an increasing share of total revenue, reaching 202 million yuan in the first half of 2025, a year-on-year increase of 59.57% [6]. - The company’s RPG title "MU Immortal" and strategy game "Nobunaga's Ambition: Path to the World" have been well-received by overseas users [6]. Group 4: IP Value and Cultural Promotion - The company leverages traditional Chinese culture for its overseas business, with projects like "Seasonal Customs" and adaptations of original IPs into various media formats [7]. - Kaiying Network's digital asset platform "Shiyuan Cube" utilizes digital and blockchain technology to promote traditional cultural IPs globally [7]. Group 5: Corporate Responsibility and Governance - Kaiying Network emphasizes the balance between economic performance and social responsibility, investing over 800 million yuan in share buybacks since 2019 and distributing a total of 1.212 billion yuan in cash dividends [8]. - The company has contributed over 15 million yuan to support education in underdeveloped areas and has logged over 7,000 hours of volunteer service [9]. - Kaiying Network has reduced carbon emissions by 10.22 tons over the past five years and actively participates in industry standard-setting for sustainable development [9].

Group 1 - The gaming sector experienced a slight decline in the early trading session on October 16, with the gaming ETF (159869) showing a minor drop. However, it has attracted significant capital inflow of 2.394 billion yuan over the past 10 trading days, bringing its total scale to 10.815 billion yuan, indicating strong investor interest in A-share gaming leaders [1] - In September 2025, the National Press and Publication Administration released a total of 156 game licenses, including 145 domestic and 11 imported games. Notable titles include Tencent's "Guihuan," NetEase's "Xinghui Youqing Tian," and others [1] - From January to September 2025, the National Press and Publication Administration issued 1,195 domestic game licenses, a year-on-year increase of 24.61%, compared to 959 licenses in the same period of 2024. This reflects a supportive regulatory environment for the gaming industry [2] Group 2 - The gaming sector is undergoing multiple catalysts, including advancements in AI, content, and commercialization models. The gaming ETF (159869) tracks the CSI Animation and Gaming Index, reflecting the overall performance of A-share listed companies in the animation and gaming industry, highlighting investment opportunities [2]

Investment Rating - The industry investment rating is maintained at "Overweight" [1] Core Insights - The gaming sector continues to attract attention, with a recommendation to buy [3] - The normalization of game license issuance reflects ongoing regulatory support for the gaming industry, with 1,195 domestic game licenses issued from January to September 2025, a year-on-year increase of 24.61% [3] - The domestic gaming market revenue in August 2025 was 29.263 billion yuan, a year-on-year decrease of 13.01%, primarily due to a high base effect from the previous year [4][5] - The overseas sales revenue of self-developed games in August 2025 was 1.68 billion USD, a year-on-year decrease of 10.66% [5] Summary by Sections Industry Performance - The relative performance over the last 12 months shows a 30.22% increase, while absolute performance indicates a 48.4% increase [2] - The gaming market experienced a revenue decline in August 2025, attributed to the lack of new blockbuster products and the fading popularity of last year's hit [4][5] Regulatory Environment - The National Press and Publication Administration issued 156 game licenses in September 2025, including 145 domestic and 11 imported games [3] - The issuance of game licenses has been consistent, with 79 imported game licenses issued in 2025 compared to 75 in the same period of 2024 [3] Investment Recommendations - The gaming sector is viewed positively due to strong cash flow, ongoing policy support, and deepening AI game development [7] - Key companies to focus on include Kyeing Network, Giant Network, G-bits, Tencent Holdings, and Xindong Company [7]

Group 1 - The game ETF (159869) has seen a narrowing decline of 0.25% as of September 30, with a net inflow of funds amounting to 1.298 billion yuan over the past five trading days, indicating strong investor interest [1] - The product scale of the game ETF has reached a new high of 10.574 billion yuan since its inception, facilitating investors in easily accessing leading A-share gaming companies [1] - In September 2025, a total of 145 domestic game licenses and 11 imported game licenses were issued, with several major companies receiving approvals for their games [1] Group 2 - The gaming sector is experiencing multiple catalysts including AI, content, and commercialization model transformations, making the game ETF (159869) an attractive investment opportunity [2]

Group 1 - The core viewpoint of the article highlights that the approval volume of game licenses in September remains high, covering various types of products and well-known manufacturers [1] - From the beginning of the year to date, a total of 1,195 domestic games have been approved, with 145 games approved in September, including titles from Tencent, miHoYo, NetEase, and others [1] - For imported games, a total of 80 games have been approved this year, with 11 games approved in September, including titles from Chuangmeng Tiandi and Xinghui Games [1] Group 2 - The game ETF (516010) tracks the animation and gaming index (930901), which selects listed companies involved in animation production, game development, platform operation, and related industry chains to reflect the overall performance of the sector [1] - The index focuses on innovation and growth in the animation and gaming field, covering the entire industry chain from content creation to distribution channels, showcasing distinct industry representation and market vitality [1]

Core Viewpoint - The gaming industry is expected to perform well in the third quarter due to the release of quality content, with a positive long-term outlook for the sector [1]. Group 1: Market Performance - The media index increased by 0.63%, ranking 5th among 31 industries, underperforming compared to the Shanghai and Shenzhen 300 index (up 1.07%) and the ChiNext index (up 1.96%) [2]. - The total number of domestic game licenses issued this year has reached 1,195, significantly surpassing the 959 licenses issued during the same period last year [2]. Group 2: Game License Distribution - In September, 145 domestic game licenses were issued, including titles from major companies such as Tencent, NetEase, and miHoYo [2]. - Additionally, 11 imported game licenses were granted, featuring notable titles like "Super Hole" and "MapleStory: New Chapter" [2]. Group 3: Market Size and Trends - In August, the domestic gaming market size was 29.263 billion yuan, showing a month-on-month growth of 0.61% but a year-on-year decline of 13.01% due to high base effects from the previous year [3]. - Mobile game revenue was 21.521 billion yuan, with a month-on-month increase of 0.85% and a year-on-year decrease of 4.25%, while client game revenue was 6.563 billion yuan, showing a month-on-month decline of 1.11% but a year-on-year increase of 17.59% [3].

Core Insights - The article highlights the stable approval process for domestic game licenses in China, with a significant increase in the number of licenses issued in 2025 compared to the previous year [1][3] - The gaming market in August 2025 showed stable performance, with notable revenue contributions from high-quality products, indicating a positive outlook for game development companies [2][3] Group 1: License Approval and Supply - On September 24, 2025, the National Press and Publication Administration approved 145 domestic games and 11 imported games, indicating a robust supply of game licenses [1] - The total number of domestic game licenses issued in 2025 has reached 1,195, significantly higher than the 959 licenses issued in the same period last year, with an average monthly issuance of 132.8 licenses [1] Group 2: Market Performance - In August 2025, the domestic gaming market generated revenue of 29.263 billion yuan, reflecting a month-on-month growth of 0.61% but a year-on-year decline of 13.01% due to a high base from the previous year [2] - Mobile game revenue was 21.521 billion yuan, with a month-on-month increase of 0.85% and a year-on-year decrease of 4.25%, while client game revenue was 6.563 billion yuan, showing a month-on-month decline of 1.11% but a year-on-year increase of 17.59% [2] Group 3: Investment Outlook - The stable approval rhythm for game licenses and the rich supply of game products lead to a favorable investment outlook for companies with strong content reserves and solid fundamentals [3]

Core Viewpoint - The gaming sector in A-shares has seen significant gains following the approval of multiple domestic and imported game licenses, indicating a positive trend for the industry [1][3]. Group 1: Market Performance - On September 25, several gaming stocks surged over 5%, including Kunlun Wanwei (300418.SZ), Icefire Network (300533.SZ), and Gigabit (603444.SH) [1]. - The gaming sector's valuation recovery is attributed to various factors, including the continuous issuance of game licenses, with 145 domestic games and 11 imported games approved recently [1][3]. - As of September 25, 2025, the A-share gaming sector comprises 24 listed companies, with some stocks achieving remarkable performance this year [7][8]. Group 2: Regulatory Environment - The National Press and Publication Administration has approved a total of 1,275 games in 2025, significantly higher than the 959 games approved in the same period last year, with an average monthly issuance increasing from 88.8 in 2023 to 132.8 in 2025 [3]. Group 3: Financial Performance - The domestic gaming market's actual sales revenue reached 168 billion yuan in the first half of 2025, marking a 14.08% year-on-year increase, setting a historical record [5]. - The A-share gaming sector reported a 22.8% year-on-year revenue growth in the first half of 2025, indicating a strong industry fundamental [5]. Group 4: Company Highlights - ST Huatuo's stock price has increased over 300% this year, making it the highest market cap company in the A-share media sector, with a total market value exceeding 160 billion yuan [9]. - Gigabit's stock rose by 5.67%, with a market value of approximately 47.69 billion yuan, and the company reported a 28.49% year-on-year revenue growth in the first half of 2025 [10][11].