High-Margin Licensing Drives 第三季 Profit Growth
Local institutional investors noted that IGS (3293) 第三季 online game licensing revenue grew 43% year-on-year, driving quarterly revenue to 67.5億元. Benefiting from a rise in high-margin overseas licensing revenue to 77%, quarterly self-reported operating margin reached 61.7%, with pre-tax profit reaching 42.9億元, up 27.4% year-on-year, beating market expectations. Growth momentum continues into 第四季, with 9月 single-month licensing revenue reaching 17.5億元, and 第四季 total revenue expected to reach 68.3億元, with 年增率近兩成.
U.S. Cross-State Expansion as Growth Driver
Institutional investors view the U.S. market as the key to IGS's long-term growth. The company has cultivated three core states in the U.S., capturing about 60% market share. Currently 35 states across the U.S. can legally operate Sweepstakes-related business, and the company is expanding into the remaining 32 states via the Social SS model, leaving huge room for expansion. Data shows U.S. market revenue grew 65% year-on-year in the first eight months of this year, and continued cross-state expansion will keep contributing to profit, becoming an important medium- to long-term operating momentum source.
Global Footprint Broadens, Forecasts Revised Up
Beyond the U.S. market, Southeast Asia accounts for 54% of company revenue, with revenue up 18% year-on-year in the first eight months of this year, expected to grow steadily on still-low market share. In addition, the company is expanding into South America, Africa and European markets through the TaDa Gaming brand, driving 86% revenue growth in other regions. Based on multi-point growth in overseas licensing business, local institutional investors forecast 2026年 and 2027年 EPS of 47.88元 and 53.38元 respectively, valuing the stock at 20 times P/E, assigning a Buy rating with a target price of 1,000元.