Group 1 - The core viewpoint of the report is that the company maintains a "Buy" rating for 贪玩 (09890), with projected EPS for 2025-2027 being 2.94, 2.26, and 2.80 RMB respectively, and a target price of 30.92 HKD based on a 12x dynamic PE for 2026 [1] - The company expects a significant increase in net profit for 2025, projected to be no less than 1.5 billion RMB, compared to 44 million RMB in 2024, driven by increased fair value gains from financial assets, improved revenue from overseas game publishing, and reduced marketing expenses [1] - The company has successfully issued zero-coupon convertible bonds totaling 468 million HKD, with funds earmarked for strategic investments in AI, enhancing its AI technology capabilities across publishing, operations, and R&D [2] Group 2 - The company has a rich pipeline of new games for 2026, including key titles such as "King's Legend 2," "New Moon Continent," and "Code: HD," which are expected to contribute to future revenue growth [3]

Group 1 - The core viewpoint of the report is that the company maintains a "buy" rating for the stock, with expected EPS for 2025-2027 at 2.94, 2.26, and 2.80 RMB respectively, and a target price of 30.92 HKD based on a 12x dynamic PE for 2026 [1] - The company forecasts a net profit of no less than 1.5 billion RMB for 2025, a significant increase from 44 million RMB in 2024, driven by fair value gains from financial assets, improved revenue from overseas gaming, and reduced marketing expenses due to AI technology applications [1][2] - The company has successfully issued 468 million HKD in zero-coupon convertible bonds to accelerate its AI and gaming strategy, with a comprehensive AI technology system already in place [2] Group 2 - The company has a rich pipeline of new games for 2026, including key titles such as "King's Legend 2," "New Moon Continent," and "Code: HD," which are expected to contribute to future revenue growth [3]

Core Insights - The company, Gamers (9890.HK), announced the issuance of zero-coupon convertible bonds totaling HKD 468 million (approximately USD 60 million) to strategically invest in AI-related industries, supporting its "AI + Gaming" strategy [1] Group 1: Convertible Bond Details - The conversion price for the bonds is set at HKD 23.50 per share, representing a premium of approximately 38.24% over the last closing price of HKD 17.00 and a 41.67% premium over the average closing price of HKD 16.59 over the previous five trading days [2] - The issuance marks the highest premium rate for a one-year convertible bond by a Hong Kong-listed company since such products appeared in the capital market [2] - If fully converted, the bonds will result in the issuance of 19,914,804 new shares, accounting for approximately 3.79% of the current total share capital and about 3.65% of the expanded share capital post-issuance [2] Group 2: Strategic Partnerships and Investor Confidence - The bonds were fully subscribed by LMR Partners, a well-known international investment management fund with over USD 11 billion in assets under management [3] - The collaboration with LMR Partners introduces a stable, high-quality international fund, aiding in optimizing the company's capital structure and enhancing its recognition in global capital markets [3] Group 3: AI Investment and Technological Advancements - The company has established a comprehensive AI technology system covering publishing, operations, and research and development, including proprietary systems like "He Tu" for data analysis and "Luo Shu" for media management [4] - The company has invested in AI-related industries through its wholly-owned subsidiary, Yuanda Future, and has successfully invested in Hangzhou Jiyi Artificial Intelligence Technology, which specializes in large models for the gaming industry [4] - The financing through convertible bonds is a proactive measure to optimize the capital structure while ensuring financial stability, allowing for significant investments in AI technology despite the long-term nature of returns [4] Group 4: Future Outlook - The company aims to become a leading enterprise driven by AI technology, committed to creating enjoyable experiences for users and providing excellent services to game development partners [5] - The issuance of convertible bonds is a significant step towards achieving the strategic goal of high-quality development in the "AI + Gaming" era [5]