YAOJI TECHNOLOGY(002605) KAIYUAN SECURITIES·2024-08-21 10:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to see a recovery in its main business, driven by the improvement in the gaming product cycle and sustained growth in the poker business [2][4] - The company reported a decline in revenue and net profit for the first half of 2024, primarily due to the gaming product cycle and reduced advertising demand [2] - The forecast for net profit from 2024 to 2026 is projected to be 7.08 billion, 7.86 billion, and 8.54 billion respectively, with corresponding EPS of 1.72, 1.91, and 2.07 [2][5] Financial Performance Summary - In H1 2024, the company achieved revenue of 19.08 billion (down 18.65% YoY) and a net profit of 2.84 billion (down 30.29% YoY) [2] - The gaming business revenue was 5.13 billion (down 27.28% YoY), while the digital marketing business revenue was 8.79 billion (down 20.29% YoY) [2] - The gross margin for H1 2024 was 36.77% (down 0.41 percentage points YoY), with Q2 2024 gross margin at 35.71% (down 4.62 percentage points YoY) [3] Business Development Insights - The company has a strong focus on R&D and technical advantages across its three main business segments, which are expected to gradually recover [4] - The poker production base project is progressing well, with over 1.5 billion raised for construction, which is anticipated to enhance the poker business's gross margin [3][4] - The company has developed an intelligent system to improve efficiency in its marketing business [4]