PWRD(002624) 东吴证券·2024-08-29 07:30Investment Rating - Buy (Maintained) [1] Core Views - The company is undergoing a team adjustment phase, which has led to short-term performance pressure, but significant products are poised for release, indicating potential future growth [1] - Revenue for 2024H1 was RMB 2.76 billion, a year-on-year decrease of 38.12%, with a net loss attributable to the parent company of RMB -177 million, a year-on-year decrease of 146.55% [3] - The company's game business revenue for 2024H1 was RMB 2.65 billion, a year-on-year decrease of 27.28%, primarily due to the natural decline in revenue from existing products and the underperformance of the new game "One Punch Man: World" in overseas markets [3] - The company's film and television business revenue for 2024H1 was RMB 90 million, a year-on-year decrease of 88.28%, mainly due to a reduction in confirmed broadcast content [3] - The company's net loss attributable to the parent company for the game business in 2024H1 was RMB -166 million, with a non-GAAP net loss of RMB -155 million, primarily due to the natural decline in performance of existing products and the underperformance of the new game "One Punch Man: World" [3] - The company's film and television business net profit attributable to the parent company in 2024H1 was RMB 89 million, with a non-GAAP net loss of RMB -18 million after excluding non-recurring gains and losses [3] - The company's revenue for 2024Q2 increased by 7.66% quarter-on-quarter, mainly due to the contribution of the new game "Persona: Phantom of the Night" launched in April 2024 [3] - The company's net loss attributable to the parent company for 2024Q2 widened quarter-on-quarter, mainly due to non-recurring losses from office space consolidation [3] - The company's product pipeline is clear, with flagship games such as "Zhu Xian World" and "Million Arthur: Ring" expected to be launched in 2024, and new games such as "Zhu Xian 2" and "Yi Huan" in development for 2025 [4] - The company's EPS for 2024-2026 has been revised down to RMB 0.06, RMB 0.49, and RMB 0.60, respectively, with corresponding P/E ratios of 122, 15, and 12 times [4] Financial Forecasts and Valuation - Revenue for 2024E is expected to be RMB 5.759 billion, a year-on-year decrease of 26.08%, with a net profit attributable to the parent company of RMB 115.13 million, a year-on-year decrease of 76.57% [2] - Revenue for 2025E is expected to be RMB 7.379 billion, a year-on-year increase of 28.12%, with a net profit attributable to the parent company of RMB 959.33 million, a year-on-year increase of 733.25% [2] - Revenue for 2026E is expected to be RMB 8.182 billion, a year-on-year increase of 10.89%, with a net profit attributable to the parent company of RMB 1.158 billion, a year-on-year increase of 20.72% [2] - EPS for 2024E, 2025E, and 2026E is expected to be RMB 0.06, RMB 0.49, and RMB 0.60, respectively [2] - The P/E ratio for 2024E, 2025E, and 2026E is expected to be 121.99, 14.64, and 12.13 times, respectively [2] Market Data - The closing price is RMB 7.24, with a one-year low/high of RMB 6.79/14.28 [5] - The P/B ratio is 1.78 times, with a circulating A-share market value of RMB 13.23 billion and a total market value of RMB 14.045 billion [5] Financial Data - The company's total assets for 2024E are expected to be RMB 13.616 billion, with total liabilities of RMB 4.419 billion and total equity of RMB 9.197 billion [8] - The company's operating income for 2024E is expected to be RMB 5.759 billion, with operating costs of RMB 1.996 billion and a gross profit margin of 65.34% [8] - The company's net profit attributable to the parent company for 2024E is expected to be RMB 115 million, with a net profit margin of 2.00% [8] - The company's operating cash flow for 2024E is expected to be RMB 73 million, with investment cash flow of RMB 216 million and financing cash flow of RMB -23 million [9] - The company's ROIC for 2024E is expected to be 1.25%, with a ROE of 1.32% [9]