FEIYU (01022) surged over 18%, with cumulative gains exceeding 120% since July. As of press time, the stock rose 18.75% to HK$0.57, with turnover of HK$15.0937 million.

On the news front, FEIYU previously issued a profit alert, expecting the group to achieve net profit after tax of approximately RMB 55-70 million for the first half of 2025, compared to a net loss after tax of approximately RMB 2 million in the first half of 2024.

The turnaround is mainly attributed to significant revenue growth, which was primarily driven by "One Step Two Steps," a game launched in the second half of 2024 that entered its monetization phase in the first half of 2025, with early marketing efforts yielding substantial returns. Additionally, the group recognized investment gains of approximately RMB 300,000 to RMB 1 million from an investment in an unlisted limited partnership during the period, compared to investment losses of approximately RMB 11.6 million from the same partnership in the first half of 2024.

CICC pointed out that the core catalyst for mini-game overseas expansion lies in the rapid expansion of the domestic mini-game market in 2023, which attracted more developers to the mini-game sector and gave rise to a batch of outstanding mini-game products. The global market's preference for lightweight gameplay forms the foundation for mini-game overseas expansion, as low barriers to entry and positive feedback loops represent current global users' gaming entertainment demands.

From a competitive perspective, the lightweight gaming sector currently faces weak competition, leaving room for mid-tier developers to acquire users overseas. Meanwhile, developers have accumulated years of overseas experience in game user acquisition and localized operations, and applying this expertise to mini-games has boosted product popularity.