Huatai Securities: Raise the target price of Heartbeat Company to 81.69 Hong Kong dollars, and the long-term growth space is expected to open up.

Huatai Securities released a research report stating that Xindong Company released its performance report with a profit surprise. It is expected to achieve revenue of not less than 3.05 billion yuan in the first half of 2025, an annual increase of about 37%; net profit of not less than 790 million yuan, an annual increase of about 215%. The bank expects the main reasons for the high performance growth to be: in terms of games, "Ragnarok M: Eternal Love", "Torchlight: Infinite", and "Xindong Town" have good liquidity, and the overall gross profit margin of the gaming business is increasing year by year; improvements in advertising algorithms and increased user engagement driving revenue and profit growth on the TapTap platform; and optimization of company expense ratios. Huatai Securities is optimistic about the company's self-developed games entering the monetization phase, the potential of diversified market expansion being validated, the enhanced commercialization capabilities of the TapTap platform, and the prospect of opening up long-term growth space. The "buy" rating is maintained, and the target price is raised from 42.89 Hong Kong dollars to 81.69 Hong Kong dollars.