Core Viewpoint - IGG's H1 2025 financial report shows stable performance with slight declines in revenue and net profit, indicating a need for new hit games to sustain growth [1][2][14]. Financial Performance - Revenue for H1 2025 was HKD 2.72 billion (approximately RMB 2.5 billion), a year-on-year decrease of 0.51% [1][2]. - Net profit was HKD 325 million (approximately RMB 298 million), down 1.9% year-on-year but up 29% quarter-on-quarter [1][2]. - The cost of sales decreased significantly from HKD 580 million to HKD 464 million [2]. Business Segments - The company operates in three main segments: mobile games, mobile applications, and other businesses [3]. - The mobile application segment generated HKD 530 million (approximately RMB 486 million) in H1 2025, a 30% increase year-on-year, contributing about 20% to total revenue [3]. - Other business revenue was HKD 160 million (approximately RMB 147 million), accounting for 6% of total revenue, down 15.8% year-on-year [3]. Key Games Performance - "King of Kingdoms," IGG's flagship game, generated HKD 1.15 billion (approximately RMB 1.06 billion) but saw a 14.2% year-on-year decline in revenue, dropping its contribution from 49% to 42% of total revenue [7][9]. - Newer titles "Doomsday: Last Survivors" and "Viking Rise" contributed HKD 520 million (approximately RMB 477 million) and HKD 360 million (approximately RMB 330 million) respectively, showing growth but not enough to offset declines from "King of Kingdoms" [9][13]. New Game Launch - The newly launched game "Fate War" has shown promising initial performance with around 1.57 million downloads in its first 18 days and a revenue of approximately HKD 9.2 million (around RMB 8.5 million) [27][33]. - Despite its initial success, the game faces challenges in sustaining high revenue levels due to a lack of ongoing large-scale marketing efforts [39][50]. Strategic Direction - IGG is actively testing numerous new games each year to identify potential hits, with a focus on SLG and other genres [52][61]. - The company aims to balance its established game portfolio with innovative new titles to capture a broader audience and adapt to market trends [68].

Core Viewpoint - CICC maintains IGG's earnings forecast and outperform industry rating, raising the target price by 26% to HKD 5.23, reflecting a valuation premium due to the strong initial performance of new products [1] Group 1: Financial Performance - For 1H25, IGG reported a revenue decline of 1% to HKD 2.721 billion, with a net profit of HKD 322 million and Non-IFRS net profit of HKD 332 million, aligning with CICC's expectations [2] - The company announced an interim dividend and special dividend totaling HKD 0.139 per share, representing approximately 50% of 1H25 net profit, with share buybacks accounting for about 11% of net profit [2][5] - The Non-IFRS net profit for 1H25 was HKD 323 million, with a gross margin increase of 4 percentage points and a sales expense ratio increase of 5 percentage points, while the adjusted net profit margin decreased by 0.5 percentage points [5] Group 2: New Product Launch - The new SLG game "Fate War" launched in early August generated HKD 20 million in revenue within the first three weeks, with a focus on user acquisition and revenue performance post-version updates [3] - The company plans to release a new version on September 30, which will include technical updates for low-performance devices and streamlined daily operations to enhance user engagement in core gameplay [3] Group 3: Existing Product Performance - The core existing products performed in line with expectations, with "Lords Mobile" experiencing a 14% revenue decline in 1H25, attributed to its maturity phase [4] - Revenue for "Doomsday" and "Viking Rise" grew by 6% and 18% year-on-year, respectively, with slight quarter-on-quarter declines, meeting expectations [4] - The company is planning gameplay adjustments for "Lords Mobile" by the end of the year and has initiated collaborations with films and other franchises to enhance user engagement and revenue [4]

公司SLG+模拟经营新品《Fate War》于8月初上线，公司表示首三周流水金额达到2,000万港元。展望未 来，该行建议关注游戏版本迭代及对应的获客情况。公司于业绩会上表示，将于9月30日推出新版本， 优化重点为：1)技术更新使游戏适配部分低性能设备;2)减少日常操作流程，推动用户将更多时长放在社 交、战斗等核心玩法。公司亦表示将于新版本上线后进行大规模用户获取投放。该行认为，公司新版本 的两项优化均有助于更广泛的用户群获取，该行建议关注后续游戏的用户数量及留存表现。 老产品整体表现稳定，关注玩法调整及联动活动进展 智通财经APP获悉，中金发布研报称，维持IGG(00799)盈利预测及跑赢行业评级，当前股价对应8.6/8.4 倍2025/2026年Non-IFRS净利润。考虑到新产品初期优异表现带来的估值溢价，上调目标价26%至5.23 港元，对应10.0/9.8倍2025/2026年Non-IFRS P/E，上行空间16%。 中金主要观点如下： 1H25业绩基本符合该行的预期，分红+回购比例提升至61% 公司公布1H25业绩：收入同降1%至27.21亿港元;归母净利润3.22亿港元，Non-IFRS净利润 ...