Ultrapower(SZ:300002) Guoyuan Securities·2024-08-28 09:02Investment Rating - The report maintains a "Buy" rating for the company Shenzhou Taiyue (300002) [1] Core Views - The company's performance is impressive, with a double-digit growth in Q2 2024. For H1 2024, revenue reached 3.053 billion yuan, a year-on-year increase of 15.04%, and net profit attributable to shareholders was 631 million yuan, up 56.18% year-on-year [1] - The gaming business shows stable performance from older products, while new products are set to launch in the second half of the year [1] - AI-enabled computer business and contributions from IoT and innovative services are driving additional revenue growth [1] - The company is expected to achieve net profits of 1.186 billion yuan, 1.343 billion yuan, and 1.525 billion yuan for 2024, 2025, and 2026 respectively, with corresponding EPS of 0.60, 0.68, and 0.78 yuan [2][1] Financial Performance - In H1 2024, the gaming segment generated revenue of 2.426 billion yuan, a year-on-year increase of 12.03%. The older product "City of the Rising Sun" contributed 1.789 billion yuan, up 21.43% year-on-year [1] - The computer business achieved revenues of 543 million yuan, 20 million yuan, and 45 million yuan from AI/ICT operations, IoT/communications, and innovative services respectively, with year-on-year growth rates of 27.06%, 107.96%, and 43.71% [1] - The company’s operating expenses for H1 2024 were 18.02%, 16.36%, and 6.33% for sales, management, and R&D respectively, showing a mixed trend compared to the previous year [1] Future Outlook - The company plans to launch two new games in the overseas market by the end of the year, which are expected to support long-term growth [1] - The report forecasts a steady increase in revenue and profit margins, with a projected revenue of 7.071 billion yuan for 2024, reflecting an 18.59% year-on-year growth [2][8]