Investment Rating - The investment rating for the company is "Accumulate" with a target price of 36.25 CNY, while the current price is 28.33 CNY [1][10]. Core Insights - The company's marketing business adjustment has led to a short-term revenue decline, but operating cash flow remains robust. Future prospects include enhancing premium game development and transitioning to creative marketing strategies to improve profitability [2][10]. Financial Summary - Total revenue for 2023 is projected at 4,307 million CNY, with a decrease to 3,271 million CNY in 2024, followed by a recovery to 3,474 million CNY in 2025, representing a 6.2% increase [4]. - Net profit attributable to the parent company is expected to be 562 million CNY in 2023, decreasing slightly to 539 million CNY in 2024, and then increasing to 607 million CNY in 2025, reflecting a 12.7% growth [4]. - Earnings per share (EPS) is forecasted to be 1.35 CNY in 2023, with an increase to 1.45 CNY in 2025 [4]. - The return on equity (ROE) is projected to be 17.5% in 2023, decreasing to 14.4% by 2027 [4]. Market Data - The company's market capitalization is 11,831 million CNY, with a total share capital of 418 million shares [5]. - The stock price has fluctuated between 19.33 CNY and 34.44 CNY over the past 52 weeks [5]. Operational Highlights - In the first half of 2025, the company reported a revenue of 1.438 billion CNY, a year-on-year decline of 24.64%, while the net profit was 256 million CNY, down 9.98% [10]. - The marketing segment experienced a significant revenue drop of 40.76% in the first half of 2025 due to business adjustments [10]. - The company has focused on upgrading existing mobile game products and developing a matrix of premium mobile games to enhance product lifecycle and market positioning [10]. Strategic Initiatives - The company is increasing its investment in innovative marketing strategies, resulting in a 3.17 percentage point increase in the gross margin of its marketing business to 8.16% in the first half of 2025 [10]. - The strategic shift towards creative marketing and premium game development is expected to enhance brand influence and improve overall profitability [10].