PWRD(SZ:002624) Xin Lang Cai Jing·2025-04-29 02:43Core Insights - The company reported a significant decline in revenue for 2024, with total revenue at 5.57 billion yuan, a year-on-year decrease of 28.50% [1] - The net profit attributable to shareholders turned into a loss of 1.288 billion yuan, compared to a profit in the previous year [1] - In Q1 2025, the company achieved revenue of 2.023 billion yuan, a year-on-year increase of 52.22%, and a net profit of 302 million yuan, which includes a non-recurring gain from the sale of a studio [1] Financial Performance - 2024 total revenue: 5.57 billion yuan, down 28.50% year-on-year [1] - 2024 net profit: loss of 1.288 billion yuan, compared to profit in the previous year [1] - Q1 2025 revenue: 2.023 billion yuan, up 52.22% year-on-year [1] - Q1 2025 net profit: 302 million yuan, with a non-recurring gain of 120 million yuan [1] - Adjusted net profit (excluding non-recurring items): 163 million yuan, turning from loss to profit year-on-year [1] Business Developments - The company is seeing early results from business adjustments, with Q1 2025 performance showing improvement [1] - New games launched in 2024 did not meet expectations, contributing to losses, while older games were shut down [1] - The gaming and film sectors are both contributing positively in Q1 2025, with significant revenue from new titles and film projects [1] - The upcoming game "Zhu Xian World" is expected to drive performance, alongside the film sector's multiple revenue-generating projects [1] Strategic Initiatives - The company is actively preparing for future game launches, including "Zhu Xian 2" and "Persona: Nightfall" [1] - The company is enhancing its competitiveness in various sectors beyond gaming, including esports and film [2] - Plans for hosting a world-class esports event, CS Asia Invitational (CAC2025), are underway to boost brand influence [2] - The film sector is also expanding, with several custom dramas and a successful short drama contributing to viewership [2] Investment Outlook - The company is expected to stabilize and improve its performance, with a focus on high-profile game developments [2] - Adjusted net profit forecasts for 2025-2027 are set at 616 million, 1.266 billion, and 1.411 billion yuan, with corresponding PE ratios of 40x, 20x, and 18x [2]