The Zhitong Finance App learned that SPDB International released a research report stating that it maintains the “buy” rating of Chuangmeng Tiandi (01119) and expects 2023E/2024E revenue to be RMB 2.48 billion/2.93 billion yuan. Xinyou is expected to drive future revenue growth, attract valuations, and target price of HK$3.7 billion. On October 16, the company announced that it had purchased, redeemed and cancelled all 2025 convertible bonds. These measures will help improve the company's debt ratio and optimize the company's capital structure. Meanwhile, recent stock repurchases have continued to be carried out to reduce share capital to enhance shareholder returns.

According to the report, the core game of Dream World has continued to rise steadily. The company “Subway Surfers” has continued to be at the top of the iOS free list recently. Through continuous product content iteration, the company has increased user activity and payment rates. The company plans to launch the 10th anniversary version of “Subway Surfers” in November, which is worth looking forward to. “Dream Home” and “Dream Garden” have maintained stable user activity and payment rates through the development of new levels and IP co-branding. It is expected that annual revenue will grow positively year-on-year.

The bank said the “Carapicchu” test data was in line with expectations, and content development is the current focus. Since the launch of the “Kalapicchu” test, data such as user activity and length of time has remained stable: 200,000 to 300,000 active users, with a duration of 120-130 minutes. The company's current focus is on enriching game content, including expansion in terms of characters and gameplay. The mobile version of “Kalapicchu” is expected to be launched in the first half of next year, and the overseas PC version is expected to be launched next year. With the gradual improvement of new game products, the company expects a significant improvement in cash flow next year.