G-bits(SH:603444) Xin Lang Cai Jing·2025-08-20 00:27Core Viewpoint - The company reported strong financial performance in Q2 2025, with revenue of 1.382 billion yuan, a year-on-year increase of 33.89%, and a net profit of 361 million yuan, up 36.64%, exceeding market expectations of 300-350 million yuan [1] Financial Performance - Q2 2025 revenue reached 1.382 billion yuan, reflecting a 33.89% year-on-year growth [1] - Net profit for Q2 2025 was 361 million yuan, marking a 36.64% increase compared to the previous year [1] - The company declared a dividend of 6.6 yuan per share (before tax) for the first half of 2025, totaling approximately 474 million yuan, with a payout ratio of 73.5% and a dividend yield of 1.7% as of August 19 [1] Development Trends - The game "Zhang Jian" performed better than expected in the domestic market, while the flagship product "Wen Dao Mobile" maintained controllable revenue trends [2] - "Zhang Jian" generated 424 million yuan in revenue in Q2 2025, surpassing the previous expectation of 300 million yuan [2] - The deferred revenue as of the end of Q2 2025 was 567 million yuan, an increase of 102 million yuan from Q1 2025 [2] - The company increased its sales expense ratio to 34.5% in Q2 2025, primarily due to upfront marketing costs for new games [2] - R&D expense ratio decreased to 12.8% in Q2 2025, attributed to a reduction in R&D personnel and corresponding salary costs [2] Future Outlook - The company is focusing on the sustainability of "Zhang Jian" in the domestic and overseas markets, with the game entering the top 30 in the Chinese overseas sales rankings in July [3] - The mini-game "Dao You Lai Wa Bao" has been performing well, ranking among the top five in the WeChat mini-game sales chart since mid-June [3] - Upcoming products include the overseas version of "Wen Jian Chang Sheng" and "Jiu Mu Zhi Ye," which has already obtained a license [3] Profit Forecast and Valuation - The company has raised its net profit forecast for 2025 and 2026 by 33% and 30% to 1.48 billion yuan and 1.63 billion yuan, respectively [4] - The current stock price corresponds to a P/E ratio of 19 and 17 for 2025 and 2026 [4] - The target price has been adjusted upward by 33% to 513 yuan, indicating a potential upside of 34% [4]