CICC issued a report stating that Jinshan Software's first-quarter results were basically in line with the bank's expectations. Game revenue fell 1% year-on-year to 9%newspinscasino.12 billion yuan, mainly due to the natural decline in existing game revenue, partially offset by the revenue contribution of "Swordsman World: Origin" released in the second half of last year.
In terms of end-games, the "Sword Network 3" expansion film Wuhai Xunlong has started public beta on April 25newspinscasino; According to the company's performance announcement,"Jianwang 3 Boundless" is expected to be launched on all platforms in June this year. The bank expects that the launch of the multi-terminal interoperability version will further enhance the activity of existing players and promote the return of old players.
In terms of mobile games,"Dust and White Forbidden Zone" has performed positively since its new version was launched in April. CICC expects that its outstanding performance in the number of daily active users and flow will continue.
According to management guidance, game revenue for the whole year is expected to record a year-on-year growth of 10%. Considering that the performance of the game business exceeded expectations, CICC raised its revenue forecast for Jinshan Software this year and next year by 2% and 3% respectively to 9.92 billion yuan and 11.7 billion yuan; in view of the increased contribution of high-margin game revenue, it raised its net profit forecast by 8% and 10% to 1.01 billion yuan and 1.37 billion yuan respectively. The bank maintains an "outperform industry" rating and a target price of HK$30.