Investment Rating - The report assigns a "Buy" rating for Century Huatong (002602.SZ) for the first time [1]. Core Insights - Century Huatong has transformed from an automotive parts manufacturer to a leading player in the internet gaming sector, achieving record-high performance in 2025 with revenue of 27.22 billion yuan, a year-on-year increase of 75.30% [6][19]. - The company's net profit for the first three quarters of 2025 reached 4.36 billion yuan, reflecting a 142% increase compared to the same period in 2024, indicating improved profitability efficiency [6][19]. - The revenue structure has shifted significantly, with mobile games accounting for 84.7% of total revenue in the first half of 2025, and overseas revenue surpassing domestic revenue for the first time, reaching 52.06% [6][27]. Financial Performance Summary - Revenue (in million yuan): - 2023A: 13,285 - 2024A: 22,620 - 2025E: 38,204 - 2026E: 48,799 - 2027E: 53,679 - Year-on-year growth rates: - 2023A: 16% - 2024A: 70% - 2025E: 69% - 2026E: 28% - 2027E: 10% [1] - Net profit (in million yuan): - 2023A: 524 - 2024A: 1,213 - 2025E: 5,721 - 2026E: 7,988 - 2027E: 9,755 - Year-on-year growth rates: - 2023A: 108% - 2024A: 132% - 2025E: 372% - 2026E: 40% - 2027E: 22% [1] Business Development - Century Huatong has undergone three phases of evolution, transitioning from automotive parts to internet gaming, and has successfully lifted risk warnings, marking a new development stage [12][14]. - The subsidiary, Diandian Interactive, has become a core growth engine, with revenue increasing from 3.74 billion yuan in 2022 to 14.96 billion yuan in 2024, and accounting for 76% of the group's total revenue in the first half of 2025 [6][70]. - The company has consistently launched successful new products, with titles like "Endless Winter" and "Kingshot" achieving significant market recognition and revenue [6][73]. Market Trends - The Chinese gaming market is recovering, with total sales revenue expected to reach 350.79 billion yuan in 2025, reflecting a year-on-year growth of 7.68% [28]. - The user base for gaming in China is projected to reach 683 million by 2025, providing a solid foundation for revenue growth [29]. - The mobile gaming segment dominates the market, accounting for 73.29% of total revenue, while client games follow with a 22.28% share [31].

业务层面，世纪华通构建起核心IP焕新与海外爆款引领的双轮驱动格局，成效显著。其中，作为国内业 务"压舱石"的盛趣游戏，持续深耕长青IP发展，2025年推出的《传奇新百区-盟重神兵》《龙之谷世 界》等"端改手"IP产品，精准契合市场需求，收获玩家广泛认可；同时，《传奇世界》《彩虹岛》《永 恒之塔》等核心IP的多端互通版本正加速研发，为后续增长储备充足动能。在私域流量运营领域，盛趣 游戏同样成效突出，通过直播、社群运营等多元举措持续激活存量用户，为进一步深挖IP价值奠定了坚 实基础。 海外市场布局上，世纪华通持续彰显领跑实力。爆款产品《Whiteout Survival》延续了2024年的优异表 现，不仅在SLG赛道上持续领跑，还稳居全球手游收入榜第4位，较上年排名上升4位，成功跻身10亿美 元收入梯队并成为该梯队增长冠军。此外，公司全新上线的策略手游《Kingshot》快速崛起，成功跻身 2025年全球手游收入榜第14位，成为年度唯一上榜的新游，与《Whiteout Survival》协同发力，彰显了 世纪华通在全球手游赛道的核心竞争力。 此次摘得4项"金茶奖"大奖，是行业对世纪华通2025年综合实力与发展成就 ...

2025年12月31日，按惯例，A股游戏行业龙头企业世纪华通（002602）发布年度"十大新闻"，全面呈现 公司在即将过去一年中的业务布局、AI战略深耕和ESG建设中的突出成果，开放展示谋求高质量发展的 清晰蓝图。 锚定可持续发展，内部建设与ESG双向赋能 在本年度十大新闻中，企业内部建设和ESG被摆在了首位，彰显了公司坚持可持续发展的坚定理念。作 为发展的核心根基，世纪华通已将社会责任与内部治理深度融合，实现生态价值与企业活力同步提 升。"小童善治""来自大山""游戏是怎样炼成的""绿色电脑教室"等一批标杆类的公益项目持续落地，不 仅是公司践行企业社会责任的重要实践，也在不断铸就世纪华通长期被信任的价值。 国内业务游刃有余，长青IP持续发力 国内业务作为公司业绩的压舱石，为持续稳定发展筑牢根基。天游软件打造的《街头篮球》赛事历经20 年沉淀持续释放活力，累计覆盖观众近2亿人次。盛趣游戏围绕长青IP构建起极具竞争力的产品格局， 《冒险岛》《永恒之塔》《传奇世界》《龙之谷》《热血传奇》《最终幻想14》《彩虹岛》等经典端游 产品稳步贡献业绩；《盟重神兵》《龙之谷世界》等"端改手"IP产品精准契合市场需求，收获玩家 ...

深圳，2025年12月5日——在今日举行的第十届金陀螺奖颁奖典礼上，世纪华通（维权）及其旗下业务单元再次成为焦点，一举摘得四项行业重磅奖项。 其中，世纪华通获评"年度影响力游戏企业奖"，旗下Century Games荣获"年度优秀出海企业奖"；产品方面，《奔奔王国》获"年度风云小游戏奖"，《龙之 谷世界》获"年度风云移动游戏奖"。这标志着公司已连续多年在该奖项评选中取得卓越成绩，持续获得行业高度认可。 金陀螺奖作为中国泛TMT领域最具专业影响力的综合性奖项之一，以其强大的专家评审团、完善的评审机制与流程著称，奖项权威性已成为行业风向 标。本届奖项涵盖游戏、XR、电竞三大板块，吸引业内众多顶尖企业参与角逐。世纪华通能够在如此激烈的竞争中多点开花，不仅是单个产品或业务的 胜利，更是系统化竞争力和战略前瞻性的集中体现。 多元产品矩阵协同发力 内外兼修彰显实力 细分赛道表现亮眼 本次获奖的两款产品，分别代表公司在轻量化与精品化两大方向的战略落地，验证了其覆盖广泛用户群体、驾驭多品类研发与运营的能力。 《奔奔王国》 荣获"年度风云小游戏奖"的《奔奔王国》，自今年8月28日上线微信小程序后，凭借其创新的玩法设计与出色的用 ...

Core Insights - Century Huatong has been nominated for three awards in the 2025 Game Top Ten Annual List, recognizing its achievements in the gaming industry [1][4][6] Group 1: Awards and Nominations - Century Huatong received the nomination for "2025 Excellent 'Going Global' Game Enterprise" due to its outstanding performance in the game export sector [4][8] - Shengqu Games, a subsidiary of Century Huatong, was nominated for "2025 Excellent Game Operation Enterprise" for its strong operational capabilities and focus on classic IPs [5][9] - The mobile game "Endless Winter," developed by DotDot Interactive, was nominated for "2025 Excellent Mobile Game," highlighting its unique product appeal and market performance [1][6] Group 2: Market Performance - Century Huatong's new game "Kingshot" has achieved significant market success, ranking first in the iOS free game charts in multiple regions within four months of its launch [4][8] - The games "Kingshot" and "Whiteout Survival" dominated the Chinese mobile game export revenue rankings, maintaining their top positions for four consecutive months [4][8] - Shengqu Games has successfully revitalized core IPs through new mobile game releases, demonstrating the enduring value and competitiveness of classic IPs in the current market [5][9] Group 3: Industry Trends - The gaming industry is entering a new phase of high-quality development, with competition increasingly focused on content innovation, technology application, and globalization capabilities [5][9] - Century Huatong aims to continue leading the way in promoting the Chinese gaming industry's advancement towards premium and international standards [5][9]

Core Viewpoint - Century Huatong has initiated a share repurchase plan, spending approximately 500 million yuan to buy back 27.43 million shares, reflecting confidence in its future prospects and strong cash flow [1][4][7]. Financial Performance - As of September 2025, Century Huatong reported cash and cash equivalents of 10.195 billion yuan, with interest-bearing liabilities of 2.636 billion yuan, indicating strong financial health [3]. - The company achieved a net profit of 1.213 billion yuan in 2024 and 4.357 billion yuan in the first three quarters of 2025, representing a year-on-year increase of approximately 142% [3][10]. - Revenue for the first three quarters of 2025 reached 27.223 billion yuan, marking a 75.31% increase compared to the previous year [10]. Share Repurchase Plan - The share repurchase plan was announced on November 12, 2025, with a total budget of 500 million to 1 billion yuan, funded by self-owned capital and a special loan [1][5]. - The first repurchase occurred on December 2, 2025, with shares bought at prices ranging from 18.01 to 18.38 yuan, totaling around 500 million yuan [4][8]. - The repurchased shares will be canceled, reducing the company's registered capital [5]. Stock Performance - Century Huatong's stock price has surged approximately 2.6 times from early 2025 to December 1, 2025, with a year-to-date increase of 259.92% [2][8]. - The stock price rose from 5.14 yuan per share at the beginning of 2025 to 22.49 yuan per share by September 26, 2025 [8]. Business Overview - Century Huatong's main business segments include internet gaming, AI cloud data, and automotive parts manufacturing, with internet gaming as the core focus [3][9]. - The company has made significant investments in research and development, with R&D expenditures of 1.78 billion yuan in the first three quarters of 2025, surpassing the total for 2024 [3][10]. - The company aims to become a leading global digital technology firm, leveraging its extensive ecosystem in the gaming industry [9].

Core Viewpoint - Century Huatong has transformed from a financially troubled company to a market-favored "game king" due to its successful mobile game "Whiteout Survival," which has generated over 20 billion yuan in revenue by September 2023 [1][12]. Financial Performance - As of November 13, 2025, Century Huatong's stock price reached 19.17 yuan per share, with a total market capitalization of 142.4 billion yuan, making it the highest valued game company in A-shares [2]. - The company's stock price has increased by 272.96% year-to-date as of November 13, 2025, with a total market value increase of 104.1 billion yuan [3]. - For the first three quarters of 2025, Century Huatong reported revenue of 27.22 billion yuan, surpassing the total revenue of the previous year, and a net profit of 4.36 billion yuan, reflecting a year-on-year growth of 141.65% [11]. Business Transformation - Century Huatong transitioned from an automotive parts manufacturer to a gaming company starting in 2014, acquiring several game companies and significantly increasing its goodwill [5][6]. - The company faced financial risks due to its rapid acquisitions, leading to a significant increase in goodwill from 2 billion yuan in 2017 to 22.05 billion yuan in 2020 [7]. Game Success - "Whiteout Survival," developed by Century Huatong's subsidiary, has become a top performer in both domestic and international markets, achieving over 200 million downloads and generating over 3.5 billion USD (approximately 24.8 billion yuan) in global revenue by September 2023 [12][13]. - The game has maintained a leading position in the Chinese mobile game export revenue rankings for 15 consecutive months and topped the global mobile game revenue chart in March 2023 [12]. Regulatory Issues - Century Huatong was previously penalized for financial misconduct, including false reporting of goodwill and revenue recognition, leading to a significant decline in stock price [4][9]. - The company has since corrected its financial statements for 2018 to 2022 and has faced investor lawsuits totaling approximately 73.16 million yuan [9]. Market Position - Century Huatong has positioned itself as a key player in the gaming industry, leveraging its strong IP portfolio and backing from Tencent to enhance its market presence [13].

Core Viewpoint - Century Huatong Group has successfully removed its risk warning status, leading to a significant increase in its stock price and market capitalization, positioning it as the leading gaming company in the A-share market [1][2]. Financial Performance - As of November 13, 2025, Century Huatong's stock price reached 19.17 yuan per share, with a total market value of 1,424 billion yuan, making it the highest valued gaming company among 23 in the A-share market [1]. - The company's stock has seen a remarkable increase of 272.96% year-to-date as of November 13, 2025, with a total market value increase of 1,041 billion yuan, averaging an increase of 3.29 billion yuan per day [1]. - For the first three quarters of 2025, Century Huatong reported revenues of 272.23 billion yuan, surpassing the total revenue for the previous year, and a net profit of 43.57 billion yuan, reflecting a year-on-year growth of 141.65% [8]. Business Transformation and Risks - Century Huatong transitioned from an automotive parts manufacturer to a gaming company, acquiring several game companies, including a significant acquisition of Shengqu Games for 29.8 billion yuan in 2019 [2][3]. - The company faced financial scrutiny due to past financial misconduct, including false reporting of goodwill and revenue recognition, leading to a warning and a fine of 8 million yuan from the China Securities Regulatory Commission [6][7]. - As of September 30, 2025, the company's goodwill stood at 119.81 billion yuan, accounting for 27.71% of total assets, indicating a slight reduction from 30.88% at the end of 2024, but still posing a risk if subsidiary performance declines [8][9]. Market Position and Product Success - The game "Whiteout Survival," developed by its subsidiary, has been a significant contributor to Century Huatong's revenue growth, achieving over 200 million downloads globally and topping revenue charts [8][9]. - The company has also launched new mobile games and holds several classic IPs, enhancing its market presence and competitiveness [9]. - Century Huatong's sales expenses surged to 105.68 billion yuan in the first three quarters of 2025, a year-on-year increase of 103.40%, reflecting its aggressive marketing strategy to maintain a pipeline of successful games [9].

Core Viewpoint - Century Huatong Group has successfully removed its risk warning status, leading to a significant increase in its stock price and market capitalization, positioning it as the leading gaming company in the A-share market [2][3]. Group 1: Stock Performance and Market Position - After the removal of the risk warning, Century Huatong's stock price rose for two consecutive days, closing at 19.17 yuan per share on November 13, 2025, with a total market value of 142.4 billion yuan [2]. - The stock has seen a remarkable increase of 272.96% year-to-date as of November 13, 2025, with a total market value increase of 104.1 billion yuan [2][8]. - Century Huatong has become the largest gaming company by market capitalization among 23 gaming companies listed in A-shares [2]. Group 2: Financial and Regulatory Background - The company faced financial scrutiny due to false financial reporting from 2018 to 2022, leading to its designation as "ST Huatong" on November 8, 2024 [3][7]. - The company was penalized by the China Securities Regulatory Commission (CSRC) for failing to conduct proper goodwill impairment tests and for other financial misreporting, resulting in a fine of 8 million yuan [7][6]. - As of September 30, 2025, Century Huatong's goodwill stood at 11.981 billion yuan, accounting for 27.71% of total assets, a slight decrease from 30.88% at the end of 2024 [11]. Group 3: Business Transformation and Growth - Century Huatong transitioned from an automotive parts manufacturer to a gaming company starting in 2014, acquiring several gaming firms, including a significant acquisition of Shengqu Games for 29.8 billion yuan in 2019 [3][4]. - The company reported a revenue of 92.76 billion yuan for the first half of 2024, a 53.33% increase year-on-year, and a net profit of 11.58 billion yuan, up 33.41% [8]. - For the first three quarters of 2025, Century Huatong's revenue reached 272.23 billion yuan, surpassing the total revenue for the previous year, with a net profit of 43.57 billion yuan, reflecting a year-on-year growth of 141.65% [9]. Group 4: Key Products and Market Strategy - The success of the game "Whiteout Survival" has been a significant driver of Century Huatong's revenue growth, achieving over 200 million downloads globally and ranking first in overseas mobile game revenue [9][10]. - The company has also launched new mobile games and holds several classic IPs, enhancing its market presence and competitiveness [10]. - To maintain growth, Century Huatong's sales expenses surged to 10.568 billion yuan in the first three quarters of 2025, a 103.40% increase year-on-year [11].

Investment Rating - The report gives a "Strong Buy" investment rating for the company [2]. Core Insights - The company has a strong focus on the gaming industry, particularly in SLG (Simulation and Strategy Games) and classic IPs, and has innovatively opened the "SLG+X" gaming track, leading to significant revenue growth [1][8]. - The company has successfully launched hit products like "Endless Winter" and "Bouncing Kingdom," which have topped various app store charts, showcasing its strong product replication capabilities [1][8]. - The company has achieved a significant turnaround, with a notable increase in revenue and profit margins, driven by its subsidiary, Point Interactive, which has seen explosive growth in both domestic and overseas markets [6][27]. Company Overview - The company has transitioned from automotive parts to the internet gaming industry, acquiring key players like Point Interactive and Shengqu Games to establish a dual-driven operational model [16][18]. - The company has diversified its business into AI and cloud data services, alongside its core gaming operations, enhancing its technological capabilities [16][18]. Financial Performance - In 2024, the company achieved total revenue of 22.62 billion yuan, a year-on-year increase of 70.27%, and a net profit of 1.213 billion yuan, up 131.51% [6][27]. - For the first half of 2025, the company reported revenue of 17.207 billion yuan and a net profit of 2.656 billion yuan, reflecting year-on-year growth of 85.50% and 129.33%, respectively [6][27]. - The company's revenue from gaming has surpassed 90% of total revenue, indicating a strong focus on this segment [30]. Market Dynamics - The global mobile gaming market is shifting from user growth to value-driven consumption, with significant revenue growth expected in the coming years [41][51]. - The Chinese gaming market has reached new highs in revenue and user numbers, with a total sales revenue of 168 billion yuan in the first half of 2025, marking a 14.08% increase year-on-year [41][46]. Strategic Positioning - The company has established a robust overseas presence, with its games achieving significant sales in key markets such as the United States, Japan, and South Korea [48]. - The partnership with Tencent, which holds a 10% stake in the company, enhances its operational capabilities and market reach [6][16].