Core Viewpoint - The company's 1H25 performance is in line with expectations, with an increase in dividend and buyback ratio to 61% [1][2] Financial Performance - Revenue decreased by 1% to HKD 2.721 billion in 1H25; net profit attributable to shareholders was HKD 322 million, with Non-IFRS net profit at HKD 332 million, meeting expectations [1] - The company announced an interim and special dividend totaling HKD 0.139 per share, representing about 50% of 1H25 net profit, with share buybacks accounting for approximately 11% of net profit [1][2] - Non-IFRS net profit for 1H25 was HKD 323 million, aligning with expectations; gross margin increased by 4 percentage points, while sales expense ratio rose by 5 percentage points, and adjusted net profit margin decreased by 0.5 percentage points [2] Product Development and Market Strategy - The new game "Fate War," which combines SLG and simulation elements, launched in early August, generating HKD 20 million in revenue within the first three weeks; the company plans to release a new version on September 30, focusing on technical updates and user experience improvements [1] - The core older product "Lords Mobile" saw a 14% revenue decline in 1H25, attributed to its maturity; the company plans to adjust gameplay by the end of the year, with potential impacts on user acquisition costs and retention [2] - Revenue for "Doomsday" and "Viking Rise" grew by 6% and 18% respectively, with a slight decline in revenue from the previous half [2] - The company is engaging in collaboration events, such as the partnership with the movie "Godzilla" and a planned collaboration with "Attack on Titan," which may enhance user acquisition and monetization [2] Valuation and Forecast - The company maintains its profit forecast and an outperform rating for the industry, with the current stock price corresponding to 8.6/8.4 times the Non-IFRS net profit for 2025/2026; the target price has been raised by 26% to HKD 5.23, reflecting a valuation premium from the new product's initial performance [3]

Group 1 - The report titled "2025 H1 Global Mobile Advertising Market Marketing Strategy White Paper" analyzes the overseas mobile game and application market, covering current status, trends, strategies, and case studies [1][2] - The white paper highlights the stable growth of the overseas mobile game market, with over 22,000 new game launches in Q2 2025, reflecting a positive advertising market attitude from game developers [11][18] - Emerging markets such as Latin America, Southeast Asia, and the Middle East are becoming key areas for growth, as competition intensifies in traditional markets like North America and Western Europe [11][22] Group 2 - The mobile advertising strategy analysis indicates an upgraded analytical framework that helps overseas companies enhance their marketing competitiveness [1][2] - The report emphasizes the importance of mixed monetization as a mainstream business model, especially in the context of finding new revenue streams amid intense competition [11][18] - Case studies from companies like Doudou Interactive and Kingshot provide insights into their marketing strategies, including product distribution and advertising approaches [1][2] Group 3 - The overseas application market is also a focus, with trends in advertising spending, major flows, and material characteristics being analyzed [2][5] - Key categories such as AI applications, novel applications, and short drama applications are highlighted, with specific advertising market trends and promotional rankings provided [2][5] - The report serves as a multi-dimensional reference for overseas companies in the mobile game and application markets, aiding in the formulation of effective marketing strategies [2][5]