PWRD(SZ:002624) SINOLINK SECURITIES·2024-07-11 04:00Investment Rating - The report maintains a "Buy" rating for the company, with expected net profits for 2024-2026 projected at 380 million, 602 million, and 883 million RMB respectively, corresponding to P/E ratios of 38.8, 22.9, and 15.6 [2]. Core Insights - The company anticipates a net loss of 160-200 million RMB for the first half of 2024, a significant decline from a profit of 380 million RMB in the same period last year. The adjusted net loss is expected to be 200-240 million RMB compared to a profit of 290 million RMB last year [2]. - The gaming segment is under pressure due to product lifecycle impacts and personnel restructuring, with expected net losses of 140-180 million RMB in H1 2024. The performance of new titles like "One Punch Man" has not met expectations, while "Persona" has received positive feedback but is expected to contribute limited revenue in Q2 [2]. - The film and television segment is projected to have a slight net profit of around 8 million RMB in H1 2024, with non-operating income primarily from asset disposals [2]. Summary by Sections Performance Analysis - The gaming business is facing challenges with a projected net loss of 25-65 million RMB in Q2 2024, an improvement from a net loss of 115 million RMB in Q1. The film segment is expected to show a significant reduction in losses, with a projected net loss of 37 million RMB in Q2, down from 120 million RMB in Q1 [2]. - The company is focusing on launching several self-developed games and optimizing its product lineup and personnel structure to improve future performance [2]. Financial Forecasts - Revenue projections for 2024-2026 are 6.97 billion, 8.05 billion, and 9.04 billion RMB, with growth rates of -10.53%, 15.42%, and 12.41% respectively. The net profit growth rates are projected at -22.72%, 58.55%, and 46.63% for the same period [6][7]. - The diluted earnings per share are expected to be 0.20, 0.31, and 0.46 RMB for 2024, 2025, and 2026 respectively, with a return on equity (ROE) of 4.53%, 7.75%, and 12.18% [6][7].