GLONGHUI, September 11 | Goldman Sachs published a research report. Based on a price-earnings ratio of 20 times in 2024, the target price of Xindong was lowered from HK$32 to HK$21.1, and the rating was lowered from “buy” to “neutral.” According to the report, the group benefits from game advertising, but competition for its traditional games and newly launched games is fierce. Gaming is falling short of expectations, and the slowdown in traditional games is dragging down the profits of the gaming business. Although its advertising business should be able to make up for adverse factors, the cost is to reduce marketing and promotion expenses, harming future monthly active user (MAU) growth. The bank lowered its revenue assumption for 2023 by 13% due to lower ad revenue due to lower revenue from self-developed games, lower channel awareness, and delayed TapTap user growth.