PWRD(002624) 国金证券·2024-07-11 04:02Investment Rating - The report maintains a "Buy" rating for the company, with expected net profit attributable to the parent company of 3.8/6.0/8.8 billion yuan for 2024-2026, corresponding to a PE of 38.8/22.9/15.6X [2] Core Views - The company's Q2 2024 losses narrowed compared to Q1, with gaming business losses decreasing and the film business turning a slight profit on a non-GAAP basis [2] - The company is focusing on "MMO+" and "card+" strategies, with multiple self-developed games such as "Zhu Xian World" and "Zhu Xian 2" expected to launch this year [2] - The company's film business has a pipeline of projects in production, including "Xu Ni Sui Yue Jing Hao" and "Chi Re" [2] Financial Performance - The company expects a net loss attributable to the parent company of 2.0-1.6 billion yuan for 1H24, compared to a profit of 3.8 billion yuan in the same period last year [2] - The gaming business is expected to contribute a net loss of 1.8-1.4 billion yuan in 1H24, compared to a non-GAAP net profit of 4.3 billion yuan in the same period last year [2] - The film business is expected to contribute a net profit of 0.8 billion yuan in 1H24, with a non-GAAP net loss of 0.1 billion yuan [2] Business Analysis - The gaming business is under pressure due to the natural decline in revenue from existing games and the underperformance of "One Punch Man" overseas [2] - The company is undergoing product layout adjustments and talent optimization, which has incurred certain costs [2] - The film business benefited from the broadcast of TV dramas such as "Xiao Ri Zi" and short dramas like "Da Guo Nian De" [2] Future Outlook - The company is expected to focus on the launch of new games and the optimization of its product line and talent structure [2] - Key games such as "Perfect New World" and "Persona" are expected to launch in overseas markets this year [2] - The film business has a pipeline of projects in normal production, distribution, and scheduling [2] Financial Projections - The company's revenue is expected to decline by 10.53% in 2024, followed by growth of 15.42% and 12.41% in 2025 and 2026, respectively [4] - Net profit attributable to the parent company is expected to decline by 22.72% in 2024, followed by growth of 58.55% and 46.63% in 2025 and 2026, respectively [4] - ROE is expected to be 4.53% in 2024, increasing to 7.75% and 12.18% in 2025 and 2026, respectively [4]