G-bits(603444) 华金证券·2024-08-22 23:30Investment Rating - The report assigns an investment rating of "Buy-A" for the company, indicating a positive outlook for future returns [1][3]. Core Insights - The company has shown steady development in its core products, with a focus on self-developed games and expansion into overseas markets. Despite a decline in revenue and net profit in the first half of 2024, there are signs of improvement in Q2 [1][3]. - The company plans to distribute a cash dividend of 45.00 CNY per 10 shares, totaling 323 million CNY, which represents 62.36% of the net profit attributable to shareholders [1]. - The company has a robust pipeline of self-developed and licensed games, with several new titles expected to launch in the near future, contributing to revenue growth [1][3]. Financial Performance - In the first half of 2024, the company reported revenue of 1.96 billion CNY, a year-on-year decrease of 16.57%, and a net profit of 518 million CNY, down 23.4% [1]. - The company’s revenue for 2024 is projected to be 4.03 billion CNY, with a slight decline expected, followed by a recovery in 2025 and 2026 [4][6]. - The gross profit margin is expected to remain stable at around 88.7% to 89.0% over the next few years [4][6]. Product Development and Market Strategy - The company focuses on self-developed games, with key titles like "Wandao" and "Wandao Mobile" contributing significantly to revenue. The operational model includes self-operated, joint-operated, and licensed operations [1][3]. - The company has a strong emphasis on research and development, with R&D expenses accounting for 19.96% of revenue in the reporting period. The R&D team has been expanding, indicating a commitment to enhancing game quality and user experience [3][4]. - The company is actively pursuing overseas markets, with international revenue reaching 255 million CNY, a year-on-year increase of 113.77% [1][3]. Valuation and Earnings Forecast - The report forecasts net profits for 2024, 2025, and 2026 to be 1.08 billion CNY, 1.22 billion CNY, and 1.39 billion CNY, respectively, with corresponding EPS of 15.00 CNY, 16.90 CNY, and 19.29 CNY [4][6]. - The company’s P/E ratio is projected to decrease from 12.0 in 2024 to 9.3 in 2026, suggesting an attractive valuation as earnings grow [4][8].