【招银国际】 Fair guidance but decent inventory and margin.pdf

Higher consumer internet revenue contribution boosted margin

We expect prudent guidance but decent margins

Recovery in sight with clear margin expansion

China Catering Sector - Customer traffic recovering; to drive margins in FY23

–Games revenue growth accelerated with solid margin expansion

Margin expansion in 23E; Volume growth in 24E

–Sequential margin contraction indicates inventory digestions may persist till FY23E

Macro uncertainty to impact revenue growth and margin outlook

Eyes on monetization potential and margin improvement trajectory

–Clear path to margin recovery; Upgrade to BUY