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]

Core Viewpoint - CICC maintains its earnings forecast and outperform rating for IGG (00799), 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, the company's revenue decreased by 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 about 50% of 1H25 net profit, with share buybacks amounting to approximately 11% of net profit [2][5] Group 2: New Product Launch - The new SLG and simulation 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, optimizing for low-performance devices and streamlining daily operations to enhance user engagement [3] Group 3: Existing Product Performance - The core existing products performed in line with expectations, with "Lords Mobile" revenue declining by 14% in 1H25 due to maturity, while "Doomsday" and "Viking Rise" saw revenue growth of 6% and 18%, respectively [4] - The company is set to adjust gameplay for "Lords Mobile" by year-end, with a focus on user acquisition costs and retention [4] - Collaborative marketing efforts, such as the partnership with the movie "Godzilla" and upcoming collaboration with "Attack on Titan," are expected to enhance user base expansion and monetization [4]