华泰证券研报指出，三七互娱2025年11月底上线的末日题材RPG 小游戏《生存33天》 迅速冲至微信小 游戏畅销榜前列，1月3日，该游戏成功获得微信小游戏畅销榜冠军位置，打破了SLG和塔防类型一年内 持续霸榜冠军的竞争格局。该行认为，该游戏通过"搜打撤"玩法对玩家形成吸引，通过画面设计与玩法 创新搭建玩家沉浸感，是继《寻道大千》《时光大爆炸》《英雄没有闪》后，推出的又一款成功游戏， 验证公司持续的产品研发力与运营力。看好公司产品力及AI的持续落地，维持"买入"评级。 ...

Core Insights - The 2025 Guangdong Game Industry Annual Conference and "Golden Diamond Ceremony" will take place on December 23-24, 2025, gathering top industry players to review achievements and predict future trends [1] - The event is guided by the Guangdong Provincial Press and Publication Bureau and organized by the Guangdong Game Industry Association, having developed into a highly recognized brand over nine years [1] - 37 Interactive Entertainment won four major awards at the "Golden Diamond Ceremony," including recognition as one of the "Top 20 Guangdong Game Companies" and accolades for its popular games [1][2] Industry Overview - The Guangdong game industry is projected to achieve an annual revenue of 283.613 billion yuan, accounting for 80.85% of the national revenue [2] - The recognition of 37 Interactive Entertainment as a top company reflects its leading position and commitment to high-quality industry development [2] Company Achievements - 37 Interactive Entertainment has actively pursued technological innovation while maintaining a focus on content, establishing an AI-enabled system that enhances efficiency across various development stages [4] - The company’s products have received multiple awards, showcasing its diverse content strategy and success in the mini-game sector, which has seen a market size of 53.535 billion yuan, a year-on-year increase of 34.39% [4] - The games "Time Explosion" and "Heroes No Flash" have been recognized as the "Most Popular Mini-Games," highlighting the company's strategic positioning in this growing market [4][6] Game Performance - "Time Explosion" achieved significant popularity, reaching the top of the iOS free chart and ranking fourth in the WeChat mini-game sales chart [6] - "Heroes No Flash" emerged as a standout in the mini-game sector, also topping the WeChat sales chart [6] - The flagship game "Douluo Continent: Soul Hunting World" won the award for "Most Popular Original Online Game," demonstrating the company's strength in IP adaptation and original development [6] Talent Recognition - The inclusion of 37 Interactive Entertainment's legal vice president and AI Lab head in the Guangdong Game Industry Expert Database reflects the industry's recognition of the company's talent [8] - The awards received at the "Golden Diamond Ceremony" signify comprehensive acknowledgment of the company's overall strength [8] Future Outlook - 37 Interactive Entertainment plans to continue investing in content creation and technological innovation, leveraging AI to enhance product development and actively participating in industry planning and development [8]

Core Insights - The Chinese gaming market's actual sales revenue for Q3 2025 reached 880.26 billion yuan, marking a quarter-on-quarter growth of 6.96% but a year-on-year decline of 4.08% [1] - The revenue from self-developed games in overseas markets was 4.994 billion USD, with a quarter-on-quarter increase of 6.34% and a year-on-year decrease of 3.39% [1] - A total of 23 A-share gaming companies reported a combined revenue of 772.45 billion yuan for the first three quarters of 2025, reflecting a year-on-year growth of 23.30% [2][3] Market Performance - The client game market in China generated 202.9 billion yuan in Q3 2025, with a quarter-on-quarter increase of 16.05% and a year-on-year increase of 19.88% [1] - The mobile game market's revenue was 643.89 billion yuan, showing a quarter-on-quarter growth of 4.39% but a year-on-year decline of 1.93% [1] - The web game market saw a revenue of 10.75 billion yuan, with a quarter-on-quarter decrease of 1.41% [1] Company Performance - Century Huatong reported a revenue of 27.223 billion yuan for the first three quarters, a year-on-year increase of 75.31%, and a net profit of 4.357 billion yuan, up 141.65% [2][3] - Perfect World achieved a revenue of 5.417 billion yuan, a year-on-year increase of 33.00%, and a net profit of 0.666 billion yuan, up 271.17% [2] - G-bits reported a revenue of 4.486 billion yuan, a year-on-year increase of 59.17%, and a net profit of 1.214 billion yuan, up 84.66% [2][7] New Product Impact - G-bits launched successful new games, contributing to a revenue of 19.68 billion yuan in Q3, a year-on-year increase of 129.19% [7] - Ice Age Network turned a profit with a revenue of 1.876 billion yuan, despite a year-on-year decline of 5.39% [8] - Century Games' titles, including "Kingshot," significantly boosted revenue, with the game surpassing 100 million USD in monthly revenue [5][4]

Core Insights - The overall performance of A-share gaming companies in Q3 showed a mix of growth and decline, with 9 companies reporting both revenue and net profit growth, led by Century Huatong, which achieved over 10 billion in quarterly revenue for the first time [1][2] Company Performance - Century Huatong reported Q3 revenue of 100.2 billion, a year-on-year increase of 60.2%, and a net profit of 17 billion, up 163.8% [2] - 37 Interactive Entertainment achieved revenue of 124.61 billion in the first three quarters, with a net profit of 23.45 billion, reflecting a year-on-year growth of 23.57% [4] - Giant Network's Q3 revenue reached 17.06 billion, a significant increase of 115.63%, with a net profit of 6.40 billion, up 81.19% [5] - Perfect World turned a profit in Q3 with revenue of 17.26 billion, a 31.45% increase, and a net profit of 1.62 billion, up 176.59% [6] - Shenzhou Taiyue reported a decline in revenue to 13.8 billion, down 5.3%, and a net profit drop of 53.6% to 2.15 billion [7] Game Titles and Strategies - Century Huatong's growth was driven by hit games like "Whiteout Survival" and "Kingshot," with the former achieving over 200 million downloads and topping revenue charts [3] - 37 Interactive Entertainment focused on long-term operations and scientific marketing strategies, launching successful titles like "Time Bomb" and "Douluo Dalu: Soul World" [4] - Giant Network's revenue growth was attributed to increased game income, indicating effective product line management [5] AI Integration - Many A-share gaming companies are emphasizing AI development, with Century Huatong hosting an AI competition and integrating AI tools into their operations [8] - 37 Interactive Entertainment is building an AI platform with over 40 capabilities to enhance various business functions [8][9] - Giant Network is also expanding its AI initiatives, collaborating with Tsinghua University on a multi-dialect speech synthesis model [9][10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has demonstrated excellent profit performance with a rich reserve of new games [1] - For the first three quarters of 2025, the company achieved revenue of 12.46 billion yuan, a year-over-year decrease of 6.59%, and a net profit attributable to shareholders of 2.34 billion yuan, a year-over-year increase of 23.57% [4] - The company continues its dividend strategy, proposing a cash dividend of 2.10 yuan per 10 shares (including tax) [4] Financial Performance - In Q3 2025, the company reported revenue of 3.97 billion yuan, a year-over-year decrease of 3.23%, and a net profit of 940 million yuan, a year-over-year increase of 49.24% [4] - The company’s sales expenses for the first three quarters of 2025 were 6.2 billion yuan, a year-over-year decrease of 19.5% [5] New Game Performance - New games such as "Time Explosion" and "Heroes Don't Flash" have performed exceptionally well, with "Heroes Don't Flash" reaching the top of the WeChat mini-game sales chart [5] - The new game "Douluo Dalu: Hunting Soul World" launched in July 2025, topping the iOS free chart on its public test day, with a cumulative download of 1.51 million and estimated revenue of 12 million yuan within 8 days [5] Game Portfolio and AI Integration - The company has a diverse portfolio of new games across various genres, including MMORPG, SLG, and card games, with titles like "The Son-in-Law" and "Code MLK" [6] - The company has deepened its AI integration, utilizing its self-developed industry model "Xiao Qi" across multiple business areas, with over 80% of 3D art resources generated by AI [7] Profit Forecast - The company is expected to achieve net profits attributable to shareholders of 3.05 billion yuan, 3.30 billion yuan, and 3.57 billion yuan for the years 2025, 2026, and 2027, respectively [8] - The corresponding price-to-earnings ratios for these years are projected to be 15.06, 13.90, and 12.87 times [8]

Core Viewpoint - The company reported a mixed financial performance for the first three quarters of 2025, with a decline in revenue but a significant increase in net profit, driven by cost optimization and increased investment income [1][2]. Financial Performance Summary - For the first three quarters of 2025, the company achieved a revenue of 13.461 billion (down 6.59% year-on-year) and a net profit attributable to shareholders of 2.345 billion (up 23.57% year-on-year) [1]. - In Q3 alone, the company reported a revenue of 3.975 billion (down 3.23% year-on-year, down 6.32% quarter-on-quarter) and a net profit of 944 million (up 49.24% year-on-year, up 10.97% quarter-on-quarter) [1]. - The company plans to distribute a cash dividend of 2.10 per 10 shares (tax included) for Q3, with a total dividend of 1.386 billion for the first three quarters, resulting in a cumulative dividend payout ratio of approximately 59% [1]. Cost and Profitability Analysis - The profit growth in Q3 significantly outpaced revenue growth, primarily due to optimized sales expenses and increased investment income, with a notable decrease in the sales expense ratio [1]. - The gross profit margin for the first three quarters was 76.76% (down 2.4 percentage points year-on-year), while the net profit margin was 18.82% (up 4.6 percentage points year-on-year) [1]. - The sales expense ratio for the first three quarters was 49.75% (down 8.0 percentage points year-on-year), with a Q3 sales expense ratio of 45.0% (down 12.0 percentage points year-on-year) [1]. Product Development and Market Position - The company has been enhancing its product matrix with successful new game launches in 2025, including titles like "Time Explosion" and "Heroes Have No Flash," which have significantly contributed to revenue growth [2]. - The company has a rich pipeline of new games across various genres, including MMORPG, SLG, and card games, with several mobile games already receiving domestic game licenses [2]. - The focus on AI technology is expected to improve the efficiency of user acquisition, further supporting the company's growth trajectory [2]. Investment Outlook - The company is expected to maintain a stable performance, with existing products generating increased profits and new game launches on the horizon [2]. - Projected net profits for 2025-2027 are estimated at 2.979 billion, 3.279 billion, and 3.622 billion, corresponding to price-to-earnings ratios of 15, 14, and 13, respectively [2].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Insights - The company reported Q3 2025 results with revenue of 3.975 billion yuan, a year-on-year decrease of 3.23%, and a net profit attributable to shareholders of 944 million yuan, an increase of 49.24% year-on-year. The non-recurring net profit was 873 million yuan, up 44.97% year-on-year. Despite a slight decline in revenue, the company continues to optimize its investment and improve profit margins [2][4][6]. Summary by Sections Financial Performance - In Q3 2025, the company achieved revenue of 39.75 billion yuan, a slight decline of 3.23% year-on-year. The net profit attributable to shareholders was 9.44 billion yuan, reflecting a significant increase of 49.24% year-on-year. The non-recurring net profit was 8.73 billion yuan, up 44.97% year-on-year [2][4]. Product Development and Market Strategy - The company has a rich product pipeline with over twenty high-quality games in genres such as MMORPG, SLG, card games, and simulation management. Notable new releases include "Douluo Dalu: Hunting Soul World," which contributed to revenue growth despite a natural decline in existing game revenues [6][11]. Cost Management and Profitability - The company has optimized its resource allocation and marketing strategies, leading to improved operational efficiency. Q3 sales expenses decreased to 1.79 billion yuan, down 5.5 million yuan year-on-year and 2 million yuan quarter-on-quarter, achieving the lowest sales expense ratio since 2019 at 45.0% [11][12]. Shareholder Returns - The company plans to distribute a cash dividend of 2.1 yuan for every 10 shares, maintaining a high dividend payout ratio of approximately 59% of net profit for the first three quarters of 2025. The annual dividend yield is estimated at 4.8% based on the closing price on October 30, 2025 [11][12]. Future Outlook - The company is expected to achieve net profits of 3.09 billion yuan and 3.38 billion yuan in 2025 and 2026, respectively, with corresponding price-to-earnings ratios of 15.0 and 13.7 times. The "Buy" rating is maintained based on these projections [11][12].

Core Insights - The A-share gaming sector has shown mixed performance in Q3 2025, with leading companies like Century Huatong, 37 Interactive Entertainment, and Perfect World reporting significant revenue and profit growth despite a declining overall market [1][2]. Group 1: Company Performance - Century Huatong reported a revenue of 27.223 billion yuan and a net profit of 4.357 billion yuan for the first three quarters, marking a 141.65% year-on-year increase in net profit [1]. - 37 Interactive Entertainment achieved a revenue of 12.461 billion yuan and a net profit of 2.345 billion yuan, with a net profit growth of 23.57% [2]. - Perfect World generated a revenue of 5.417 billion yuan, with a net profit of 666 million yuan, indicating a turnaround from losses in the previous year [3]. Group 2: Market Trends - The Chinese gaming market's actual sales revenue in Q3 2025 was 88.026 billion yuan, reflecting a year-on-year decline of 4.08% [1]. - The mini-game market is experiencing significant growth, with a 40.2% year-on-year increase in revenue, projected to exceed 60 billion yuan in 2025 [2]. - The esports sector continues to grow for Perfect World, with stable revenue from key products like "Counter-Strike: Global Offensive" and "DOTA 2" [3].

Group 1: Sanqi Interactive Entertainment - The company reported a net profit of 944 million yuan in Q3 2025, with a proposed cash dividend of 462 million yuan [1] - For the first nine months of 2025, the company achieved a revenue of 12.461 billion yuan, a year-on-year decrease of 6.59%, while net profit increased by 23.57% to 2.345 billion yuan [1] - The growth in Q3 was attributed to the long-term operation of existing products and the successful launch of new games such as "Time Explosion" and "Heroes Without Flash" [1] Group 2: Gigabit Network - The company reported a net profit growth of 307.70% in Q3 2025, reaching 569 million yuan, with a revenue of 1.968 billion yuan, up 129.19% year-on-year [2] - For the first three quarters of 2025, the company achieved a revenue of 4.486 billion yuan, a year-on-year increase of 59.17%, and a net profit of 1.214 billion yuan, up 84.66% [2] - The significant growth was driven by new game launches and a 59.46% increase in overseas business revenue [2] Group 3: Giant Network - The company reported a revenue of 1.706 billion yuan in Q3 2025, a year-on-year increase of 115.63%, with a net profit of 640 million yuan, up 81.19% [3] - For the first three quarters of 2025, the company achieved a revenue of 3.368 billion yuan, a year-on-year increase of 51.84%, and a net profit of 1.417 billion yuan, up 32.31% [3] - The growth was primarily due to an increase in game revenue, indicating the effectiveness of its product line operation strategy [3]

Core Insights - The mini-game sector has emerged as one of the largest growth points in the gaming industry in recent years, with DataEye providing exclusive monthly observations on WeChat mini-games [1]. Consumption Patterns - In September, the consumption share of major categories such as war strategy, idle, and simulation management declined, with war strategy dropping by 1.2 percentage points and simulation management by approximately 1.3 percentage points [4]. - The mini-game market returned to normalcy post-summer, leading to a shift in marketing strategies for certain products, which may pressure leading categories [4]. - The second tier of consumption saw an increase in tower defense and legendary RPG categories, with tower defense reaching approximately 12.64% of consumption share, showing growth from August [4]. - The consumption share of character card categories further declined to below 5%, while card and fishing games slightly improved their consumption share [4]. Monthly Consumption Rankings - The top consumption list for September saw "Three Kingdoms: Ice Age" at the top, with "Zombie Defense" moving up one position to second, and "Endless Winter" dropping to third [8]. - "Forever Blue Planet" maintained strong consumption momentum, rising seven ranks to seventh place in the monthly consumption list [8]. - "Source Star Domain," a new sci-fi idle card game, debuted in the top ten, benefiting from a collaboration with "The Wandering Earth" and featuring a celebrity endorsement [10]. Growth Rankings - The consumption growth ranking for September was led by "Source Star Domain," followed by "Bouncing Kingdom" and "Flame Awakening" [19]. - "My Garden World," which launched on the last day of September, quickly rose to the popularity list and ranked 21st in the sales chart, performing exceptionally well during the National Day holiday [19]. - The overall trend indicates a recovery in the legendary RPG sector, with four products entering the consumption growth ranking [21]. Advertising Trends - In September, the total advertising material for WeChat mini-games was approximately 2.13 million, reflecting a 4.8% increase from August [25]. - The number of games participating in advertising reached about 12,200, marking an increase of 50 games from August [27]. - The top three themes for participating games were modern, other, and fantasy, with legendary themes seeing nearly a 10% increase in game participation [30].