PWRD(SZ:002624) Guoyuan Securities·2024-08-29 10:00Investment Rating - The report assigns a rating of "Accumulate" to the company [1]. Core Views - The company's short-term performance is under pressure due to a lack of new game launches and disappointing performance of some new products, leading to a significant decline in revenue and net loss [3][4]. - The company is focusing on optimizing its product lineup and enhancing its overseas business, which is expected to provide incremental growth opportunities [5]. Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 2.76 billion yuan, a year-on-year decline of 38.12%, and a net loss attributable to shareholders of 177 million yuan, a year-on-year decline of 146.55% [3]. - The revenue decline is attributed to fewer new game launches and a decrease in revenue from existing games [3]. - The company’s expense ratios for sales, management, and R&D were 18.35%, 16.84%, and 34.47%, respectively, showing increases compared to the previous year [3]. Product Development - The gaming segment generated revenue of 2.65 billion yuan, down 27.28% year-on-year, primarily due to fewer new game launches and the impact of product life cycles on existing games [4]. - The company is actively working on new product launches, including titles like "Persona" and "Zhu Xian World," with positive feedback from initial testing phases [4]. Investment Recommendations and Profit Forecast - The report forecasts the company's net profit attributable to shareholders for 2024-2026 to be 193 million, 520 million, and 615 million yuan, respectively, with corresponding EPS of 0.10, 0.27, and 0.32 yuan per share [5]. - The projected P/E ratios for the same period are 74, 28, and 23, respectively, supporting the "Accumulate" rating [5].