G-bits(SH:603444) Xin Lang Cai Jing·2025-08-22 10:28Core Viewpoint - The company reported strong financial performance for the first half of 2025, with significant revenue growth driven by new game launches and stable performance from existing products [1][2]. Financial Performance - The company achieved a revenue of 2.518 billion yuan in H1 2025, representing a year-on-year increase of 28.49% [1]. - The net profit attributable to shareholders was 645 million yuan, up 24.50% year-on-year [1]. - The net profit excluding non-recurring items was 648 million yuan, reflecting a 40.02% increase compared to the previous year [1]. - A cash dividend of 66.00 yuan per 10 shares (including tax) is proposed, accounting for 73.46% of the net profit attributable to shareholders for H1 2025 [1]. New Game Launches - Two new games were launched in H1 2025: "Wen Jian Chang Sheng (Domestic)" and "Zhang Jian Chuan Shuo (Domestic)" [1]. - "Wen Jian Chang Sheng" generated a revenue of 566 million yuan in its first half [1]. - "Zhang Jian Chuan Shuo" achieved a revenue of 424 million yuan within one month of its launch and reached a peak ranking of 10 on the App Store [1]. - The company anticipates continued strong performance from these new titles, contributing significantly to revenue growth [1]. Existing Products - The existing product "Wen Dao Mobile" generated a revenue of 1.07 billion yuan in H1 2025, with a controlled decline of 7.3% year-on-year [1][2]. - The company is monitoring the performance of its existing products while focusing on the launch of new titles [2]. Cost Structure and Business Development - The sales expense ratio for H1 2025 was 33.2%, an increase of 5.8 percentage points year-on-year, primarily due to marketing expenses for new game launches [2]. - The R&D expense ratio was 14.2%, down 5.8 percentage points year-on-year, attributed to a reduction in the number of R&D personnel [2]. - Overall, the changes in expenses align with the company's new product strategy and business adjustments, laying a foundation for future revenue conversion [2]. Investment Outlook - The successful launch of new games indicates the beginning of a new product cycle for the company, with expectations for continued revenue growth from both new and existing games [2]. - Projected net profits for 2025-2027 are estimated at 1.520 billion, 1.804 billion, and 1.908 billion yuan, with corresponding PE ratios of 20x, 17x, and 16x [2].