G-bits(603444) 东吴证券·2024-08-16 03:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved operating revenue of 1.96 billion yuan in H1 2024, a year-on-year decrease of 16.57%, and a net profit attributable to shareholders of 518 million yuan, down 23.39% year-on-year. The performance met expectations [2] - The company announced a cash dividend distribution plan for H1 2024, proposing a cash dividend of 45 yuan (including tax) for every 10 shares, totaling 323 million yuan, which accounts for 62.36% of the net profit attributable to shareholders for H1 2024 [2] - The company is expected to enter a new stable phase with existing games while awaiting the launch of new products [3] - The forecast for EPS has been adjusted downwards for 2024-2026 to 13.13, 15.31, and 16.93 yuan, respectively, corresponding to current P/E ratios of 15, 13, and 12 times [3] Summary by Sections Financial Performance - In H1 2024, the company reported total operating revenue of 1.96 billion yuan, a decrease of 16.57% year-on-year, and a net profit of 518 million yuan, down 23.39% year-on-year. The net profit for Q2 2024 was 264 million yuan, a year-on-year decline of 28.14% [2] - The company’s revenue from its key products in H1 2024 included 656 million yuan from "Wandao PC Game" (up 16.31% year-on-year) and 1.155 billion yuan from "Wandao Mobile Game" (down 14.66% year-on-year) [3] Future Outlook - The company is set to launch new games, with "Zhang Jian Chuan Shuo" (code M88) entering paid testing on August 13, 2024, and expected to launch in H1 2025 [3] - The company is actively monitoring the performance of new games and expects to see improvements in revenue from existing titles as they stabilize [3] Valuation Metrics - The current market price is 198.99 yuan, with a P/E ratio of 12.74 for 2023 and projected P/E ratios of 15.16 for 2024 and 13.00 for 2025 [4][8] - The company’s total market capitalization is approximately 14.34 billion yuan [4]