Group 1 - Tianfu Culture and Tourism (SZ 000558) announced that as of the announcement date, Rhine Holdings Group has pledged a total of 70.83 million shares, accounting for 99.99% of its holdings [1] - For the first half of 2025, the revenue composition of Tianfu Culture and Tourism is as follows: cultural tourism 51.88%, film and television business 35.03%, rental income 7.45%, conference and exhibition business 4.8%, and sports income 0.83% [1] - As of the report, the market capitalization of Tianfu Culture and Tourism is 8.5 billion yuan [1]

Group 1 - The core viewpoint of the article is that Tianfu Culture and Tourism (SZ 000558) has signed cooperation framework agreements with various cultural and tourism authorities to promote the integration of film and tourism [2] - The agreements were signed with the Dazhou Cultural Sports and Tourism Bureau, Yibin Cultural Tourism Exhibition Group Co., Ltd., and Ziyang Cultural Tourism Development Group Co., Ltd. [2] - For the year 2024, the revenue composition of Tianfu Culture and Tourism is projected to be: 52.51% from film business, 32.82% from cultural tourism, 8.53% from rental income, 2.94% from conference and exhibition business, and 1.97% from sports income [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of JPY 4,400 [8][9]. Core Insights - The company's FY3/25 revenue is projected at JPY 12,957.1 billion, a slight decrease of 0.5% year-on-year, while operating profit is expected to grow by 16.4% to JPY 1,407.2 billion, exceeding the company's guidance of JPY 1,335 billion [1][2]. - The gaming and semiconductor businesses are anticipated to continue driving performance, with gaming business operating profit guidance exceeding expectations despite the delay of GTA6 [2][3]. - The impact of tariffs on operating profit is estimated at around 8%, but the actual effect may be more limited due to diversified production locations and increased inventory in the U.S. [3][4]. - The financial division spin-off is expected to be completed in October, which is viewed positively as it allows the company to focus more on its creative entertainment vision [4][5]. Revenue and Profit Forecast - For FY3/26, the company expects revenues of JPY 11,700 billion and operating profit of JPY 1,380 billion, with gaming and network services projected to grow by 15.7% year-on-year [2][3]. - The forecast for FY3/26 to FY3/28 net profit is JPY 10,743 billion, JPY 12,630 billion, and JPY 13,690 billion respectively, reflecting a downward adjustment of 11% and 2% for FY3/26 and FY3/27 due to tariff impacts [5][16]. Segment Performance - The gaming and network services segment is expected to generate significant revenue, with a projected operating profit of JPY 4,086 billion for FY3/26, driven by strong first-party game sales [17]. - The music segment is also expected to perform well, with an operating profit margin higher than comparable companies, projected at JPY 3,698 billion for FY3/26 [17]. - The imaging and sensing solutions segment is anticipated to see improvements in profit margins due to cautious investments and market share growth in the automotive sector [17].