For the first time, we covered Dream World (1119.HK) and gave it a “buy” rating, with a target price of HK$3.7. Dream World is a well-known game manufacturer in China. It operates various boutique games such as “Dream Garden,” “Dream Home,” “Subway Parkour,” and “Temple Run 2,” etc., and occupies a leading position on the racetrack where it is located, building a solid base for the company. The gradual delivery of the company's self-developed products ushered in a harvest period. It is planned to launch two key games in the second half of the year, which is expected to accelerate the company's business growth. Furthermore, the company strategically deployed Fanbook, a user operation management tool, and actively embraces AIGC technology to help achieve long-term operation of game products. At the same time, the company is actively shrinking non-core products, and the revenue structure is gradually being optimized. We expect the company to turn losses into profits in 2023. The adjusted profit margin will improve to 13.3%, and future profits are expected to be released at an accelerated pace.