YAOJI TECHNOLOGY(SZ:002605) Guotai Junan Securities·2024-08-22 23:37Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company's performance in the first half of 2024 met expectations, with notable growth in overseas business despite a year-on-year decline in overall profit [2][3] - The company is expected to improve its profitability in the second half of 2024 as production capacity for playing cards increases and new game products are launched [3] Summary by Relevant Sections Financial Performance - For the first half of 2024, the company reported revenue of 1.908 billion yuan, a year-on-year decrease of 18.65%, and a net profit attributable to shareholders of 284 million yuan, down 30.29% [3] - The second quarter of 2024 saw revenue of 927 million yuan, a quarter-on-quarter decline of 5.58% and a year-on-year decline of 19.96% [3] - The company's playing card business remained stable, generating revenue of 491 million yuan, a year-on-year decrease of 4.72% [3] Business Segments - The mobile gaming segment experienced a revenue decline of 27.28%, totaling 513 million yuan, while the digital marketing segment saw a revenue drop of 20.29%, amounting to 879 million yuan [3] - The gross margin for the playing card business improved to 30.45%, an increase of 4.42 percentage points year-on-year [3] Overseas Business Growth - The company's overseas revenue reached 103 million yuan, a significant year-on-year increase of 148.82%, driven by the expansion of its game product line in international markets [3] Future Projections - The report forecasts earnings per share (EPS) for 2024, 2025, and 2026 to be 1.56 yuan, 1.86 yuan, and 2.19 yuan respectively, with a target price of 30.05 yuan based on a 20x price-to-earnings ratio for 2024 [3]