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 ...

Core Insights - IGG (00799) reported a revenue of HKD 2.721 billion for the six months ending June 30, 2025, representing a year-on-year decrease of 0.51% [1] - The profit attributable to equity shareholders was HKD 322 million, down 2.85% year-on-year, with basic earnings per share at HKD 0.2805 [1] - The company proposed an interim dividend of HKD 0.083 per share and a special dividend of HKD 0.056 per share [1] Revenue Breakdown - The core gaming products, "Doomsday: Last Survivors" and "Viking Rise," contributed approximately HKD 520 million and HKD 360 million, respectively [1] - The APP business generated revenue of HKD 530 million, with these three segments collectively accounting for 52% of total revenue [1] - The classic product "King of Kingdoms," which has been online for nine years, contributed significant revenue of approximately HKD 1.15 billion [1] Geographic Revenue Distribution - Revenue distribution by region showed that Asia accounted for 42%, Europe for 35%, and North America for 19% of the total revenue [1] Profitability and Expenses - The group's profit for the first half of 2025 was HKD 320 million, roughly flat compared to the same period last year, but showed a 29% increase quarter-on-quarter [2] - Marketing expenses increased by 10% year-on-year, aimed at deepening engagement with both new and existing users [2] - The main business profit (non-IFRS measure) contributed approximately HKD 340 million, while the investment business recognized an unrealized loss of about HKD 20 million due to fair value changes [2] Future Outlook - Moving into the second half of 2025, the company aims to continue driving growth in its gaming and APP businesses while maintaining long-term stable profitability [2] - The company emphasizes its commitment to evolving with the times while staying true to its core values, focusing on global market development and operations [2]

Core Insights - IGG reported a total revenue of HKD 2.72 billion for the first half of 2025, showing stable year-on-year performance [1] - The company declared an interim dividend of HKD 0.139 per share, totaling approximately HKD 161 million, which represents 50% of the profit for the period [1] Financial Performance - The group's gross profit for the period was HKD 2.257 billion, an increase of 5% compared to HKD 2.155 billion in the same period of 2024 [2] - The gross profit margin improved to 83%, up from 79% year-on-year, primarily due to optimized operating costs and increased revenue from high-margin APP business [2] - The profit for the period was HKD 320 million, roughly flat compared to the same period last year, but showed a 29% increase quarter-on-quarter [1] Business Segments - Core gaming products contributed approximately HKD 5.2 billion and HKD 3.6 billion from "Doomsday: Last Survivors" and "Viking Rise," respectively [1] - The APP business generated revenue of HKD 530 million, a year-on-year growth of 30%, and accounted for about 20% of total revenue [2] - The APP business achieved over 73 million monthly active users, a 79% increase compared to the previous year [2] Shareholder Returns - The total amount for dividends and share buybacks was approximately HKD 350 million, representing 61% of the period's profit [1] - The company repurchased shares worth about HKD 35 million, which is 11% of the profit for the period [1]

Core Insights - IGG reported a revenue of HKD 2.721 billion for the six months ending June 30, 2025, representing a year-on-year decrease of 0.51% [1] - The profit attributable to equity shareholders was HKD 322 million, down 2.85% year-on-year, with basic earnings per share at HKD 0.2805 [1] - The company proposed an interim dividend of HKD 0.083 per share and a special dividend of HKD 0.056 per share [1] Revenue Breakdown - The core gaming products, "Doomsday: Last Survivors" and "Viking Rise," contributed approximately HKD 520 million and HKD 360 million, respectively [1] - The APP business generated revenue of HKD 530 million, with the three main projects accounting for 52% of total revenue [1] - The classic product "King of Kingdoms," which has been online for nine years, contributed significant revenue of approximately HKD 1.15 billion [1] Geographic Revenue Distribution - Revenue from Asia, Europe, and North America accounted for 42%, 35%, and 19% of total revenue, respectively [1] Profitability and Expenses - The profit for the period was HKD 320 million, roughly flat compared to the previous year, but showed a 29% increase quarter-on-quarter [2] - Marketing expenses increased by 10% year-on-year, aimed at enhancing user engagement and extending product lifecycle [2] - The main business profit (non-IFRS measure) contributed approximately HKD 340 million, while investment activities recognized an unrealized loss of about HKD 20 million due to fair value changes [2] Future Outlook - Moving into the second half of 2025, the company aims to continue growth in gaming and APP businesses, focusing on long-term stable profitability [2] - IGG emphasizes its commitment to global market development and innovation in mobile internet products, adhering to its corporate culture of "keeping pace with the times while staying true to its original intention" [2]

Core Insights - IGG has become more conservative after experiencing significant fluctuations in its business performance, with a revenue of over 5.7 billion HKD (approximately 5.2 billion RMB) last year, marking a 9% year-on-year growth, and a profit increase of 697% to 580 million HKD, compared to previous losses [1][27] - Despite the recovery, IGG's competitive edge is diminishing, as evidenced by its drop from around 15th to over 20th place in the global revenue rankings by Sensor Tower [1] Product Strategy - IGG maintains a testing rhythm of about 30 new products annually, shifting its focus back to the SLG genre, moving away from niche categories [3][4] - Over half of the new products tested in the past two years are SLG games, with three major upcoming titles: SLG "Project PSS," casual social game "Tycoon Master," and SLG "Frozen War" [4][20] - "Project PSS" is a significant investment, building on the previous title "Rebirth of Glory," which incorporates elements from top competitors while adding RTS features [4][5] Game Development - "Rebirth of Glory" features enhanced production mechanics and a more complex gameplay structure compared to its competitors, focusing on resource management and strategic gameplay [5][6] - IGG is also exploring various SLG gameplay innovations, including titles like "Dawn Gathering" and "Myco Citadel," which incorporate different thematic elements and gameplay styles [8][10] - The company is testing new SLG products that blend RPG elements and casual gameplay, indicating a shift towards integrating lighter mechanics into traditional SLG frameworks [18][20] Financial Performance - Despite last year's recovery, the revenue from the gaming segment has slightly declined due to the drop in income from "King of Kingdoms," indicating that the gaming business has not fully returned to growth [27][30] - The APP business has seen significant growth, with monthly active users increasing from 9.5 million in 2023 to 62 million in 2024, contributing to a revenue increase from 100 million HKD in 2022 to 1.09 billion HKD in 2024 [32] Market Position - IGG's anxiety about its market position is evident, as it struggles to find new hits that can surpass "King of Kingdoms," leading to a more cautious approach in product development [33] - The company is focusing on creating reliable products rather than taking risks on innovative but uncertain concepts, reflecting a strategic shift in response to market pressures [33]