G-bits(603444) 国联证券·2024-08-19 10:00Investment Rating - The report maintains a "Buy" rating for the company, citing its leading R&D capabilities and potential long-term benefits from the trend of high-quality game development [2][4] Core Views - The company is expected to achieve revenues of 3.83/4.405/4.845 billion yuan in 2024-2026, with year-on-year growth rates of -8.48%/15.00%/10.00% respectively [2] - Net profit attributable to the parent company is projected to be 1.028/1.161/1.312 billion yuan in 2024-2026, with growth rates of -8.67%/12.98%/13.02% respectively [2] - EPS is forecasted to be 14.26/16.12/18.21 yuan for 2024-2026 [2] - The company's new game pipeline is robust, with several self-developed and agency-distributed games expected to launch in the near future, including "Wen Jian Chang Sheng" and "Zhan Jian Chuan Shuo" [6] - The company is accelerating its overseas expansion, with overseas business revenue reaching 255 million yuan in H1 2024, a year-on-year increase of 113.77% [6] Financial Performance - In H1 2024, the company reported revenue of 1.96 billion yuan, a year-on-year decrease of 16.57%, and net profit attributable to the parent company of 518 million yuan, a year-on-year decrease of 23.39% [6] - The company plans to distribute a cash dividend of 4.5 yuan per 10 shares, totaling 323 million yuan, and repurchased 241,500 shares in H1 2024 [6] - R&D expenses in Q2 2024 accounted for 19.90% of revenue, an increase of 3.67 percentage points year-on-year, driven by the expansion of the R&D team [6] Game Pipeline and Overseas Expansion - Key self-developed games include "Wen Jian Chang Sheng" (expected to enter paid testing in Q3 2024) and "Zhan Jian Chuan Shuo" (expected to launch in H1 2025) [6] - Agency-distributed games include "Feng Shen Huan Xiang Shi Jie" (scheduled for release on October 18) and "Yi Xiang Hui Sheng" (expected to launch in H2 2024) [6] - The company is focusing on global distribution for games like "Zhan Jian Chuan Shuo," "Chong Ya Yuan Shi Ren," and "Yi Wan Guang Nian," which are expected to further increase the proportion of overseas revenue [6] Valuation and Financial Ratios - The company's P/E ratio is projected to be 13.3/11.8/10.4 for 2024-2026, while the P/B ratio is expected to be 2.9/2.7/2.5 for the same period [7] - The EV/EBITDA ratio is forecasted to be 5.9/5.0/4.2 for 2024-2026 [7] - The company's ROE is expected to be 21.48%/22.57%/23.64% for 2024-2026, with a net profit margin of 34.20%/33.60%/34.52% [9]