The Zhitong Finance App learned that CICC released a research report stating that it maintains the “outperform the industry” rating of Celadon Gaming (06633), considering the upward shift in the industry's valuation center, the target price is HK$7. The company announced Yingxi, predicting that the net profit of 1H23 would be between 30 and 50 million yuan, in line with the bank's expectations. The bank determined that the year-over-year profit conversion was mainly due to: 1) the launch of the new tour “New Fairy Sword and Fairy: The Legend of Sword and Sword” and “The Demon Slayer Project”; 2) the effective control of 1H23 expenses. The company plans to release the 1H23 results announcement at the end of August 2023.
According to the report, in terms of inventory, the company's flagship game “The Strongest Snail” has maintained long-term operation. On June 23, it launched its 3rd anniversary campaign and series of events, driving the game to 30th place in the iOS game bestseller list on the same day. On the incremental side, the company launched its self-developed product “The Demon Slayer” in January 2023, and jointly released “The Legend of New Fairy Sword and Fairy: The Legend of Sword and Sword” (hereinafter referred to as “Sword Waving Inquiry”) in June. According to China Mobile Games, “Wave Your Sword and Ask” had a turnover of over 200 million yuan in the first month of launch. According to the bank's judgment, the outstanding performance of the new tour's “Wave Your Sword and Enchantment” and “Project Enchantment” may jointly drive the company's 1H23 to achieve higher revenue growth.
The bank mentioned that celadon reserve products will be launched one after another. Among them, the agency product “Magical Girl Sakura: Memories Key” (for women) plans to launch an unlimited fee deletion test in mid-August 2023, which is expected to be launched domestically within the year; the agency's “Rider Chase” (Action RPG) version was approved in July; the remaining reserve products include self-researched “Time Travel Service”, agency “Super Meteor Project”, “Slayer 2,” etc. CICC believes that the company has a rich reserve of diverse products developed and represented by the company, and suggests continuing to pay attention to the product launch process. In terms of the game going overseas, “The Strongest Snail” was launched in North America and Australia on August 3, and distribution work is underway in Southeast Asia and other regions; the “Magic Card Girl Sakura: The Key to Memories” is planned to be launched later in Hong Kong, Macao and Taiwan. The bank believes that the company continues to promote a global business layout and is expected to open up a second growth curve.