G-bits(SH:603444) Guoyuan Securities·2024-08-16 08:33Investment Rating - The report maintains a "Buy" rating for the company [3][9]. Core Insights - The company's core games are performing steadily, with a focus on product release schedules. The short-term performance is slightly under pressure, but cash dividends and share buybacks are boosting investor confidence [1]. - In H1 2024, the company achieved operating revenue of 1.96 billion yuan, 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 R&D expense ratio increased significantly, reflecting a commitment to enhancing product development [1]. - The company has a robust pipeline of self-developed and agency games, with several titles expected to launch in the near future, which could positively impact future revenues [2]. Financial Performance - The company reported a significant increase in overseas game revenue, reaching 255 million yuan, a year-on-year growth of 113.77%. This indicates strong international market performance [1]. - The financial forecast for 2024-2026 estimates net profits of 1.08 billion yuan, 1.25 billion yuan, and 1.38 billion yuan respectively, with corresponding EPS of 14.9, 17.4, and 19.2 yuan, and PE ratios of 13x, 11x, and 10x [3][5]. - The company plans to continue its "small steps, fast running" strategy, focusing on stable long-term operations of core products and expanding its game portfolio [3]. Product Pipeline - The company has a rich reserve of games, including self-developed titles like "Wanjian Changsheng" and "Zhangjian Chuanqi," which have received approval and are set for release in the upcoming quarters [2]. - Agency games such as "Fengshen Fantasy World" are scheduled to launch in October 2024, with additional titles expected in the second half of 2024 [2].