Investment Rating - The industry investment rating is "Positive" (maintained) [7] Core Insights - The gaming sector has shown resilience in the current macroeconomic environment, with strong performance from both listed and non-listed companies during the Spring Festival period, confirming the ongoing logic of a significant product year in 2026 [7] - Notable games such as "Goose Goose Duck" have dominated the App Store charts, while companies like Century Huatong and Perfect World have seen impressive pre-registration numbers and revenue growth for their upcoming titles [2][3][5] - The overall industry sentiment is improving, with non-listed companies also achieving remarkable results, as seen with "Blue Archive" and "Arknights" celebrating significant anniversaries and experiencing substantial revenue increases [4] Summary by Sections Company Performance - Tencent's games have shown comprehensive growth, with "Goose Goose Duck" topping charts and "Dark Zone Breakthrough" reaching over 230 million registered users [7] - Century Huatong's "Yihuan" has surpassed 25 million pre-registrations, outperforming titles like "Genshin Impact" in pre-launch interest [3] - Giant Network's "Supernatural Action Group" has achieved a daily active user (DAU) count exceeding 10 million, benefiting from the holiday season [3] Revenue Growth - Tencent's "Honor of Kings" saw a 105% month-on-month revenue increase to $220 million, while "Peacekeeper Elite" surpassed $110 million in revenue during January [7] - Non-listed games like "Blue Archive" and "Arknights" reported global revenue increases of 220% and 122%, respectively, in January [4] Investment Recommendations - The report recommends focusing on Perfect World due to the strong pre-registration numbers for "Yihuan" and suggests monitoring companies like Tencent, Huya, Century Huatong, Giant Network, and Kingsoft for their product lines [5]

Core Insights - Century Games, a subsidiary of Century Huatuo, achieved a record number of four products entering the top 30 of the Chinese mobile game overseas revenue list published by Sensor Tower for January 2026 [1][5] Group 1: Product Performance - The games "Whiteout Survival" and "Kingshot" maintained strong performances, consistently ranking in the top three [2][7] - "Tasty Travels: Merge Game" saw a 33% month-over-month revenue increase, driven by successful operational activities, including the "Coral Isles" themed event and the "Echoes of Vitality" spring card collection event, which contributed to its entry into the top ten of the revenue list [2][7] - "Truck Star," a truck modification-themed match-3 game, made its debut in the top 30, establishing a solid market position through consistent updates despite initial low visibility [3][9] Group 2: Strategic Insights - The simultaneous entry of four products into the revenue list reflects the success of Century Games' dual-category strategy of "SLG + Casual" games, aligning with the company's long-term vision for sustainable business development [4][10] - The complementary growth of SLG and casual game categories validates the feasibility of the dual-category strategy and showcases Century Games' capability in product development across different genres [4][10] - The company's data-driven methodology, characterized by low-cost experimentation, large-scale promotion, rapid iteration, and strong collaborative efforts, is expected to support continued long-term growth in overseas markets [4][10]

Core Insights - Several leading A-share gaming companies have released performance forecasts, with some expecting net profit growth due to overseas business expansion, long-term operation of classic products, and cost reduction measures, while others face declines in existing game revenue or post-acquisition challenges leading to goodwill impairment and losses [1] Group 1: Company Performance Forecasts - Perfect World expects a net profit of 720 million to 760 million yuan for 2025, marking a turnaround from losses [1] - Century Huatong's net profit is projected to increase by 357% to 475%, with estimated revenue of approximately 38 billion yuan, a 68% year-on-year growth [3] - G-bits anticipates a net profit of 1.69 billion to 1.86 billion yuan, representing a 79% to 97% increase compared to the previous year [4] Group 2: Key Products and Market Position - Century Huatong's success is attributed to two major global hits, "Whiteout Survival" and "Kingshot," which have positioned the company among the top in the global mobile gaming market [2][3] - Perfect World's upcoming game releases, including "Zhu Xian World" and "Persona: Night Shadow," are expected to contribute significantly to its 2025 performance [5] Group 3: Challenges Faced by Companies - Electric Soul Network is projected to incur its first annual loss since going public, with expected losses of 160 million to 230 million yuan due to declining revenue from acquired subsidiaries and goodwill impairment [6] - Toma Cat's losses are expected to widen to 1.1 billion to 1.4 billion yuan, attributed to intensified competition and underperformance of new game products [7] Group 4: Industry Trends and Future Outlook - The gaming industry is experiencing a surge in new game releases, with several titles achieving significant user engagement and revenue shortly after launch [8] - The issuance of game licenses has increased significantly, with 177 domestic and 5 imported licenses issued in January 2026, indicating a positive trend for the industry [9] - The industry is expected to enter a "golden decade" starting in 2025, driven by a focus on high-quality game production and technological advancements [10]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 28.07 CNY per share based on a 23X PE valuation for 2026 [6]. Core Insights - The company is experiencing a continuous upward trend in operations, with significant performance across multiple segments, particularly in the SLG (Simulation Game) and casual gaming categories [6]. - The company’s revenue for 2025 is projected to be approximately 38 billion CNY, representing a year-on-year growth of 68.2% [2]. - The net profit attributable to shareholders is expected to reach between 55.5 billion CNY and 69.8 billion CNY in 2025, indicating a substantial growth range of 357% to 475% year-on-year [6]. Financial Projections - Revenue Forecast: - 2023A: 13,285 million CNY - 2024A: 22,620 million CNY - 2025E: 38,036 million CNY - 2026E: 49,425 million CNY - 2027E: 54,029 million CNY - Growth Rates: 15.8% (2023A), 70.3% (2024A), 68.2% (2025E), 29.9% (2026E), 9.3% (2027E) [2][6]. - EBITDA Forecast: - 2023A: 2,666 million CNY - 2024A: 4,805 million CNY - 2025E: 8,536 million CNY - 2026E: 11,552 million CNY - 2027E: 15,297 million CNY [2]. - Net Profit Forecast: - 2023A: 524 million CNY - 2024A: 1,213 million CNY - 2025E: 6,076 million CNY - 2026E: 8,996 million CNY - 2027E: 12,072 million CNY - Growth Rates: -107.8% (2023A), 131.5% (2024A), 400.8% (2025E), 48.1% (2026E), 34.2% (2027E) [2][6]. - EPS Forecast: - 2023A: 0.07 CNY - 2024A: 0.16 CNY - 2025E: 0.82 CNY - 2026E: 1.22 CNY - 2027E: 1.64 CNY [2]. Market Position and Product Performance - The company has maintained a leading position in the SLG segment, with its flagship product "Whiteout Survival" achieving record highs in the overseas mobile game rankings [6]. - The casual gaming segment has also seen breakthroughs, with products like "Tasty Travels: Merge Game" entering the top 15 of the overseas mobile game rankings [6].

Investment Rating - The industry investment rating is "Positive" and maintained [7] Core Insights - The new game cycle in January continues with several products like "Duck Duck Goose" and "Heart Town" launching successfully. The trend of Chinese games going overseas remains strong, with leading companies like Dd and others showing impressive performance. The industry is expected to see a series of new game launches, leading to continuous catalysts [2][4] - The gaming sector's product cycle in 2026 shows strong sustainability and performance certainty, indicating room for valuation improvement. It is recommended to continue focusing on investment opportunities in the gaming sector, with relevant companies including Giant Network, Kaiying Network, Perfect World, 37 Interactive, G-bits, Yaoji Technology, Shengtian Network, Tencent Holdings, and Xindong Company [2][4] Summary by Sections New Game Launches - The January new game cycle has seen successful launches, including "Duck Duck Goose," which has gained significant popularity, and "Heart Town," which topped the global free charts in over 50 regions during its pre-download phase [2][4] - The performance of these new games validates the importance of global expansion and social interaction as growth engines in the gaming industry, with a strategy of "evergreen games + globalization" becoming key for leading companies [10] Overseas Market Performance - The overseas gaming market continues to thrive, with Dd's "Whiteout Survival" achieving over $4 billion in global revenue by December 2025. Other games like "Tasty Travels: Merge Game" and "Truck Star" have also shown strong performance in the overseas market [10] Future Game Releases - Upcoming game releases include Tencent's "Counter-Strike: Future" on January 13, "Rock Kingdom: World" on March 26, and several others from various companies, indicating a busy launch schedule that may catalyze further industry growth [10]

Core Insights - The 2025 Tokyo Game Show (TGS2025) showcased Century Games' efforts in the Japanese market, highlighting the success of their two SLG titles, "Whiteout Survival" and "Kingshot" [1][6] - Japan's mobile gaming market is projected to generate $11 billion in in-app purchase (IAP) revenue in 2025, making it the second-largest globally, with a player average revenue per user (ARPU) 1.8 times higher than that of Europe and the U.S. [3][4] - Despite a competitive landscape dominated by local companies, Century Games has managed to establish a foothold in Japan through effective localization and marketing strategies [5][19] Market Overview - Japan's gaming market, while smaller than the U.S. and China, is characterized by high profitability and a strong player base, with local IPs holding a 63% market share [5][3] - The Japanese mobile gaming ecosystem is mature, with a stable download rate of approximately 628 million per year, but with a focus on high-value transactions [4][3] Company Performance - "Whiteout Survival" has consistently ranked in the top 20 of free and top 10 of revenue charts in Japan, while "Kingshot" has quickly entered the iOS top 20 shortly after its launch [6][19] - Century Games has built a local team in Japan since 2019 to enhance community engagement and user feedback, moving beyond simple product exportation [7][19] Marketing Strategies - The company has effectively integrated local cultural elements into its marketing, collaborating with events like the Hokkaido Snow Festival and utilizing local influencers to enhance brand recognition [9][12] - A comprehensive marketing approach includes both online and offline strategies, such as themed promotional vehicles and targeted advertising in local media, which has significantly boosted brand awareness [12][19] Future Outlook - With the ongoing demand for SLG games in Japan and the company's accumulated user data and brand reputation, Century Games is well-positioned to expand its market share [19][20] - The successful strategies employed in Japan are expected to be replicable in other international markets, enhancing the company's long-term growth potential [19][20]

Core Insights - Century Huatong has established itself as the leading A-share gaming company with a revenue of 22.62 billion yuan in 2024, marking a 70.27% year-on-year growth [1] - The company's overseas business revenue reached 11.367 billion yuan, accounting for 50.26% of total revenue, highlighting its significant role in driving growth [1] - The success of the game "Whiteout Survival" has contributed to Century Huatong's strong overseas performance, maintaining the top position in global mobile game revenue for ten consecutive months [2] Financial Performance - In 2024, Century Huatong achieved a total revenue of 22.62 billion yuan, with a year-on-year increase of 70.27% [1] - For Q1 2025, the company reported a revenue of 8.145 billion yuan, reflecting a 91.12% year-on-year growth [1] - The overseas business has become a core growth engine, with revenue surpassing 11.367 billion yuan [1] Product Performance - "Whiteout Survival" has surpassed 100 million downloads globally and has consistently ranked first in mobile game revenue for ten months [2] - The game has shown a 13% increase in overseas revenue during the 2024 Christmas period due to new content updates [2] - Other titles like "Dragonscapes Adventure" and "Family Farm Adventure" have also contributed to steady revenue growth [3] Market Strategy - Century Huatong is leveraging a dual-brand strategy with its subsidiary, Point Interactive, to enhance overseas market penetration [3] - The company is focusing on a comprehensive approach to game development, from IP creation to overseas operations, aligning with national policies promoting cultural exports [5][6] - The shift from "going out" to "going in" reflects a deeper understanding of local cultures and user needs, aiming for long-term brand establishment in overseas markets [6]