External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>FriendTimes reported largely in-line FY23 results, which we think has been already priced in.</li><li>Twist of the Fate (ToF2) ranked top 50-70 in terms of iOS grossing in 1Q24 quarter-to-date.</li><li>We expect ToF2 to keep relatively stable grossing ahead, and the next focus could be: 1) Android channel expansion; 2) overseas versions to be released; and 3) improving S&amp;M efficiency.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FriendTimes reported largely in-line FY23 results, which we think has been already priced in.Twist of the Fate (ToF2) ranked top 50-70 in terms of iOS grossing in 1Q24 quarter-to-date.We expect ToF2 to keep relatively stable grossing ahead, and the next focus could be: 1) Android channel expansion; 2) overseas versions to be released; and 3) improving S&amp;M efficiency.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FriendTimes (6820 HK) - Eyes on Mini-Game Potential and Cost Control

<ul><li>FriendTimes launched ToF2 on 2 Jan 2024, followed by an overseas version on 10 Jan. By 10 Jan, ToF2 ranked top 53 in terms of iOS grossing.</li><li>We estimate ToF2’s grossing for the first month could exceed that of TOF1, and anticipate an upward trend over the next 4-5 months.</li><li>We see high visibility for ToF2 to contribute annual grossing of RMB1.2bn and profit of RMB200mn in FY24E, supported by 1) a larger user base from channel diversification across iOS, Android and proprietary channels, 2) differentiated marketing campaigns, and 3) the release of monthly expansion packs. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FriendTimes launched ToF2 on 2 Jan 2024, followed by an overseas version on 10 Jan. By 10 Jan, ToF2 ranked top 53 in terms of iOS grossing.We estimate ToF2’s grossing for the first month could exceed that of TOF1, and anticipate an upward trend over the next 4-5 months.We see high visibility for ToF2 to contribute annual grossing of RMB1.2bn and profit of RMB200mn in FY24E, supported by 1) a larger user base from channel diversification across iOS, Android and proprietary channels, 2) differentiated marketing campaigns, and 3) the release of monthly expansion packs. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FriendTimes Inc. (6820 HK) – Looking to FY24E Rebound with Rising ToF2

<ul><li>We hosted a three-day NDR for FriendTimes (FT), during which its mgmt. showed more confidence in the upcoming launch of Twist of the Fate (ToF, 浮生忆玲珑), diversified pipeline and mini-games potential in FY24-25E.</li><li>We suggest to move beyond soft 2H23E, and eye on the launch of ToF (estimated on 2 Jan 2024).</li><li>With better testing feedback and differentiated marketing, we see high visibility for ToF to contribute annual grossing of RMB1.2bn and profit of RMB200mn in FY24E, backed by innovative cooperation with popular female-oriented dramas and films, as well as offline campaigns. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We hosted a three-day NDR for FriendTimes (FT), during which its mgmt. showed more confidence in the upcoming launch of Twist of the Fate (ToF, 浮生忆玲珑), diversified pipeline and mini-games potential in FY24-25E.We suggest to move beyond soft 2H23E, and eye on the launch of ToF (estimated on 2 Jan 2024).With better testing feedback and differentiated marketing, we see high visibility for ToF to contribute annual grossing of RMB1.2bn and profit of RMB200mn in FY24E, backed by innovative cooperation with popular female-oriented dramas and films, as well as offline campaigns. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FriendTimes Inc. (6820 HK) – Eye on Upcoming Launch of Twist of the Fate

<ul><li>FriendTime’s 1H23 results missed our estimates/consensus, with rev -25% YoY and adj. net loss at RMB78mn on declining legacy games and soft new titles.</li><li>Looking into FY24E, we expect moderate recovery with the launch of the Twist of the Fate, and the company to turn a profit with RMB38mn in FY24E.</li><li>To factor in game softness and potential S&amp;M expenses incurred by new launches, we cut FY23-25E rev by 21.1-25.8%, while trimmed NPM by 1-15ppts. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FriendTime’s 1H23 results missed our estimates/consensus, with rev -25% YoY and adj. net loss at RMB78mn on declining legacy games and soft new titles.Looking into FY24E, we expect moderate recovery with the launch of the Twist of the Fate, and the company to turn a profit with RMB38mn in FY24E.To factor in game softness and potential S&amp;M expenses incurred by new launches, we cut FY23-25E rev by 21.1-25.8%, while trimmed NPM by 1-15ppts. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FriendTimes Inc. (6820 HK) – Looking into Moderate Recovery in FY24E

<ul><li>As a leading female-oriented game boutique, we expect FT to see mild recovery in FY23E, backed by the launch of A Story of Lala (TOP 50 in iOS grossing rank).</li><li>FY22 softness was well anticipated by the market, and we suggest to look into its FY23E rebound (forecasting topline/bottom line +1%/398% YoY).</li><li>A Story of Lala is still at growing stage, and more titles will bring further upside, including ToF (to be launched in 4Q23E), and in FY24E. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

As a leading female-oriented game boutique, we expect FT to see mild recovery in FY23E, backed by the launch of A Story of Lala (TOP 50 in iOS grossing rank).FY22 softness was well anticipated by the market, and we suggest to look into its FY23E rebound (forecasting topline/bottom line +1%/398% YoY).A Story of Lala is still at growing stage, and more titles will bring further upside, including ToF (to be launched in 4Q23E), and in FY24E. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FriendTimes Inc. (6820 HK) – A female-oriented game boutique with recovery in sight

China

FriendTimes is a leading mobile game developer, publisher, and operator specializing in female-oriented, story-driven mobile games with themes of romance, fashion, simulation, and role-playing. Its key products include popular titles such as Legend of Empress, Royal Chaos, Fate of the Empress, Promise of Lingyun, and Twist of the Fate. The company was founded in 2010 and is headquartered in Suzhou, China.

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FriendTimes (6820 HK)