G-bits(SH:603444) Orient Securities·2024-08-20 11:42Investment Rating - The report maintains a "Buy" rating for the company with a target price of 197.68 CNY [2][4] Core Insights - In Q2 2024, the company's revenue was 1.03 billion CNY, showing a year-over-year decline of 14.29% but a quarter-over-quarter increase of 11.34%. The decline is attributed to decreased revenue from core products and the expiration of a collaboration with the developer of "Mole Manor" [1] - The gross margin for Q2 2024 was 87%, down 1 percentage point year-over-year and 2 percentage points quarter-over-quarter. The net profit attributable to the parent company was 260 million CNY, a year-over-year decrease of 28% but a quarter-over-quarter increase of 4% [1] - The company has several self-developed games that have obtained licenses, including "Wanjian Changsheng" (M72) and "Zhangjian Chuanqi" (M88), with expectations for revenue growth in Q4 2024 due to new game launches [2][1] Financial Summary - The company's projected net profits for 2024, 2025, and 2026 are 1.017 billion CNY, 1.313 billion CNY, and 1.332 billion CNY respectively, reflecting adjustments due to changes in investment income and game launch delays [2] - The report outlines key financial metrics, including a projected revenue of 3.892 billion CNY for 2024, with a year-over-year decline of 7% [3] - The company's earnings per share are projected to be 14.12 CNY in 2024, with a net profit margin of 26.1% [3]