G-bits(SH:603444) Guohai Securities·2024-08-23 04:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Insights - The company's performance in Q2 2024 met expectations, with a revenue of 10.32 billion yuan, a year-over-year decrease of 14.29%, but a quarter-over-quarter increase of 11.34% [2][6] - The company plans to distribute a dividend of 45 yuan for every 10 shares in H1 2024, with a dividend payout ratio of 62.36% [2][6] - The company is entering a new product cycle with a rich reserve of self-developed and agency products, which is expected to drive future growth [3][18] Financial Performance Summary - In H1 2024, the company reported a revenue of 19.6 billion yuan, down 16.57% year-over-year, and a net profit attributable to shareholders of 5.18 billion yuan, down 23.39% year-over-year [2][6] - The total revenue from key products in H1 2024 was 21.23 billion yuan, reflecting an 18.56% year-over-year decline [2][11] - The company’s Q2 2024 net profit was 2.64 billion yuan, a decrease of 28.41% year-over-year, but an increase of 4.38% quarter-over-quarter [2][6] Product Performance and Market Position - The core products, including "Wandao Mobile" and "Yinian Xiaoyao," have shown mixed performance, with "Wandao Mobile" experiencing a revenue increase during its anniversary event [2][11] - The company has a strong pipeline of upcoming products, including self-developed titles like "Wanjian Changsheng" and "Zhangjian Chuanqi," which have received approval for release [15][17] - The overseas revenue for H1 2024 was 2.55 billion yuan, representing a significant year-over-year increase of 113.77% [6][11] Earnings Forecast - The company’s revenue projections for 2024, 2025, and 2026 are 37.61 billion yuan, 44.37 billion yuan, and 49.03 billion yuan, respectively, with net profits expected to be 9.73 billion yuan, 11.79 billion yuan, and 13.43 billion yuan [18][21] - The earnings per share (EPS) estimates for the same period are 13.51 yuan, 16.37 yuan, and 18.65 yuan, with corresponding price-to-earnings (P/E) ratios of 13x, 11x, and 9x [18][21]