YAOJI TECHNOLOGY(SZ:002605) Xin Lang Cai Jing·2025-05-01 00:40Core Viewpoint - The company reported a significant decline in revenue for 2024, with total revenue of 3.271 billion (down 24.04% year-on-year) and a net profit of 539 million (down 4.17% year-on-year) [1] Group 1: Business Performance - The poker business remained stable, while overseas gaming business showed strong performance; however, revenue decline was attributed to reduced income from digital marketing and gaming segments [2] - In 2024, gaming business revenue was 1.015 billion (down 17.20% year-on-year), accounting for 31.04% of total revenue, with domestic gaming revenue declining due to high 2023 base and product cycle factors [2] - The overseas gaming business saw revenue and profit growth, with the subsidiary Dayu Competition achieving revenue of 140 million (up 10.07% year-on-year) and net profit of 5.95 million (returning to profit) [2] - The poker business generated revenue of 1.082 billion (down 0.75% year-on-year), benefiting from sales structure adjustments and improved high-margin poker sales, with a gross margin increase of 3.84 percentage points to 30.40% [2] Group 2: Digital Marketing and Cost Management - Digital marketing revenue for 2024 was 1.142 billion (down 40.25% year-on-year), with a gross margin increase of 2.31 percentage points to 7.76% [3] - The company improved profit margins in Q4 2024, with a gross margin of 75.85% (up from 51.26% in Q3 2024) due to a decrease in low-margin advertising business and improved gross margins [4] - Sales expenses in Q4 2024 decreased by 48% to 50 million, while R&D expenses decreased by 13% to 60 million, indicating effective cost management [4] Group 3: Future Outlook - The company is expected to expand poker production capacity, addressing capacity bottlenecks and increasing market share [4] - The casual gaming segment is performing well, with overseas gaming business showing competitive advantages; prior investments in R&D and marketing are anticipated to yield profits in the future [4] - Strategic investment in Shanghai Luda aims to participate in card development and operations, with expectations for continued growth in the card business [4] - Profit forecasts for 2025 and 2026 are 600 million and 670 million respectively, with corresponding PE ratios of 17.9 and 16.1, maintaining a buy rating [4]