国泰君安证券:维持中手游"增持"评级 目标价3.75港元

Guotai Junan Securities: Maintains China's mobile game “increase” rating target price of HK$3.75

Gelonghui Finance ·  09/05/2023 11:33

On September 1, Guotai Junan Securities released a research report, maintaining the “increase in holdings” rating for mobile games (0302.HK) and maintaining the target price of HK$3.75.

According to the report, in the first half of 2023, 8 new mobile games were released, injecting new strength into financial losses and profits. Financial data turned a loss into a profit, with operating data picking up sharply. On the other hand, mobile games continue to increase research and development, and it is worth looking forward to the growth of the Xianjian product matrix in the second half of the year.

Focusing on the results of the newly released semi-annual report, the report mentions outstanding game titles. “Legend of Sword and Sword and Love”, which went live in the first half of the year, was launched in June '23. In the first month of launch, it was ranked 1st on the App Store free list and 14th on the bestseller list in mainland China; “All Star Fighter”, which landed in Hong Kong, Macao, Taiwan and Southeast Asia in February, was ranked 1st on the App Store free list and 5th on the bestseller list in the first month of launch. It is expected that the mobile game “National Street Basket”, which will go live within 23 years, will receive a version number in May. After launch, the mobile game will create an exclusive e-sports event. Meanwhile, the key product “Fairy Sword World” also obtained a version number in June, and was first revealed that month and received a lot of praise. Through AI, NPC interaction is realized and subsequent story development is influenced, creating an “everything can be interacted” immersive experience for players. Furthermore, “Legend of Sword and Fairy: A New Beginning” in collaboration with Kaiying Network has also obtained a version number, and “Fairy Sword: Origin”, a collaboration with Ling Xi Mutual Entertainment, has entered the final testing stage.

The excellent performance of Xinyu in the first half of the year greatly boosted the recovery of mobile game operating data. Among them, the number of monthly active users increased from 12.78 million in H1 in '22 to 15.63 million in H1 in '23. The ARPPU value increased from 218.3 yuan to 226.1 yuan, and the successive development of the Xianjian product matrix may further consolidate its performance foundation.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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