Jinwu Financial News | Jinshan Software (03888)'s stock price rose. At one point, it rose nearly 5% to HK$33.55. As of press release, it was still up 2.82% to HK$32.85, with a turnover of HK$0.188 billion.
Lyon pointed out in the report that Jinshan Software's gaming business performance exceeded expectations, and both game revenue and profit achieved 78% year-on-year growth in the third quarter. The agency believes that Jinshan Software's game business performance this year is extremely strong, which may set a high comparative benchmark for the 2025 fiscal year. Despite this, the five new games the company expects to launch in 2025 will maintain a strong growth momentum. As a result, Lyon raised Jinshan Software's 2024 and 2025 net profit forecasts by 26% and 14%, respectively, to reflect the increase in the game business forecast.
Considering the forecast adjustments and the better synergy that may be achieved between Xiaomi-W (01810) and Jinshan Software under the updated framework agreement, which may reduce the holding company's discount, Lyon raised the target price of Jinshan Software from HK$29.5 to HK$37.2, and maintained a “outperforming the market” rating.
