G-bits(603444) Guotai Junan Securities·2024-08-18 08:40Investment Rating - The report maintains an "Accumulate" rating for the company [4] Core Views - The market's expectations for the company are primarily based on mobile game performance, while the company's PC game performance is strong, indicating that the overall situation of existing products may be better than market expectations. The company has four new products expected to launch within the next year, which may support performance [2][3] Summary by Sections Financial Performance - For the first half of 2024, the company reported revenue of 1.96 billion yuan, a year-on-year decrease of 16.57%. The net profit attributable to the parent company was 518 million yuan, down 23.39% year-on-year [3] - In Q2 2024, the company achieved revenue of 1.03 billion yuan, a quarter-on-quarter increase of 11.34%, but a year-on-year decline of 14.29%. The net profit attributable to the parent company was 264 million yuan, with a quarter-on-quarter increase of 4.38% and a year-on-year decline of 28.41% [3] Product Performance - The PC game "Wandao" generated revenue of 656 million yuan in the first half of 2024, a year-on-year increase of 16.31%, demonstrating strong vitality and being a key support for the company's performance. However, the mobile game "Wandao Mobile" saw a year-on-year revenue decline of 14.66% despite a revenue increase during its anniversary event [3] - The company plans to launch at least four new products in the next year, including three agency products in the second half of 2024 and a self-developed product in the first half of 2025. The product pipeline also includes several other self-developed and agency products, with most already obtaining approval [3] Valuation and Target Price - The target price for the company has been adjusted to 218.25 yuan from the previous 274.44 yuan, based on a reference of 15.1x PE for the media industry in 2024. The EPS forecast for 2024-2026 is adjusted to 14.55, 16.80, and 18.69 yuan, respectively [3][4]