心动公司：新游表现亮眼，用户回升TapTap

Investment Rating - Maintain "Buy" rating with a target price of HKD 22 [3] Core Views - The company's 1H24 revenue reached RMB 2.22 billion, a YoY increase of 26.7%, with gross margin improving by 8.2pp to 67.4% due to higher self-developed game revenue contribution [2] - Adjusted net profit was RMB 240 million, with an adjusted net margin of 10.7%, and adjusted EBITDA grew by 72.7% YoY to RMB 320 million [2] - Game business revenue increased by 29.3% YoY to RMB 1.49 billion, driven by strong performance of new games such as "Let's Go Muffin" and "Sword of Linlang" [2] - TapTap platform revenue grew by 32.6% YoY to RMB 1.30 billion, with monthly active users (MAU) in China reaching 43.24 million, a YoY increase of 27.3% [2] - The company expects strong growth in game revenue in 2H24 due to the successful launch of new games and the upcoming release of "Let's Go Muffin" in South Korea and Japan [2] Financial Projections - Revenue for 2024E/2025E is projected to be RMB 5.0 billion/RMB 5.3 billion, with adjusted net profit of RMB 570 million/RMB 650 million [3] - The target price of HKD 22 implies a 2024E/2025E P/E of 17.0x/14.7x [3] Game Performance - "Let's Go Muffin" became the top revenue contributor in 1H24 after its launch in Hong Kong, Macau, Taiwan, and mainland China, with plans for expansion into South Korea and Japan [2] - "Heartbeat Town" achieved over 25 million downloads in its first month and is expected to become a product with millions of daily active users (DAU) [2] TapTap Platform - TapTap's user base rebounded, with MAU in China growing by 27.3% YoY and 14.8% QoQ, driven by increased marketing and the launch of popular games [2] - The company has limited ad load rates to improve user experience, which may slightly impact short-term ad revenue growth, but double-digit growth is still expected in 2H24 [2]