China Securities Co., Ltd. released a research report stating that it maintains a "buy" rating on Friendtimes (06820), with expected revenues of 1.18 billion yuan and 1.58 billion yuan for the years 2024-2025.
Zhixin Finance APP learned that China Securities Co., Ltd. released a research report stating that it maintains a "buy" rating on Friendtimes (06820), with expected revenues of 1.18 billion yuan and 1.58 billion yuan for the years 2024-2025. Since 2014, the new game revenue performance of Friendtimes has been relatively stable, coupled with the expansion of mini-games through game channels, simulation operations, and the exploration of new tracks targeting male audiences. It is expected that the revenue side will gradually improve. Meanwhile, due to effective cost control of projects and personnel and control of acquisition costs, profit is expected to remain stable.
Main viewpoints of Zhongxin Jiandao are as follows:
Traditional female-oriented categories have shown robust performance, and the expansion through mini-programs and other channels is progressing smoothly.
In the traditional advantage of ancient-style RPG female-oriented games, the company has a unique ability to create explosive hits. At the same time, the company adheres to long-term operation, with long lifecycles of games. Products such as "Fusheng Weiqingge", "Lingyun Nuo", and "Fusheng Yilenglong" continue to maintain stable revenue performance. In addition, in the rapidly growing mini-program channels, the company has initiated multiple small game projects of different types and styles, including testing and promoting games like "Dulala's Promotion", "Code: Heritage", and "Code: New Star". "Dulala's Promotion" and "Lingyun Nuo" have successfully entered the Top 100 of the WeChat Mini Games bestseller list and the Top 30 of the TikTok Mini Games hot stocks list.
Product category expansion, with a rich pipeline in the future.
While consolidating its leading position in the domestic female market, the company is also actively expanding into the male-oriented, general user, and overseas markets. As competition intensifies and acquisition costs rise, the company continues to launch new product categories. This year, Friendtimes ventured into the male-oriented game field for the first time, investing fewer resources in the turn-based strategy chess market with its poetic frontier free martial arts mobile game "Ink Sword Riverside", achieving a breakthrough. The company has rich reserves in middle-to-light simulation operations, leisure games, and other game categories. The new tracks may open up additional space for Friendtimes.
The company's issuance system has improved, making project development more flexible.
The group has a professional global distribution and operation team. With the rise in traffic costs in recent years, the past "extensive" purchasing volume has gradually shifted to refinement, and the company pays more attention to ROI in project initiation, distribution, and other links. Games such as the low-cost, high-return "Ink Sword Rivers and Lakes", "Lingyun Nuo" mini-games, and "Du Lala's Promotion Diary" mini-games have all achieved good results. The company aims for ROI, making the project initiation, distribution, and other links more flexible and refined. With the subsequent launch of multiple numerical games, the company is expected to enter a profitable period.
