Ultrapower(SZ:300002) Haitong Securities·2024-09-01 04:39Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a significant increase in net profit and an increase in overseas revenue contribution, with a total revenue of 3.053 billion yuan for the first half of 2024, representing a year-on-year growth of 15.04%. The overseas revenue grew by 22.76% to 2.549 billion yuan, accounting for 83.5% of total revenue, an increase of 5.25 percentage points year-on-year [6][10] - The gaming business showed strong performance with a revenue of 2.426 billion yuan, up 12.03% year-on-year, and a gross margin increase to 72.86%. The core products, such as "Age Of Origins," saw a revenue increase of 21.43% to 1.789 billion yuan [6][10] - The software and IT services segment also grew, with a revenue of 627 million yuan, up 28.41%, contributing 20.53% to total revenue. The company has a strong R&D capability, with 361 patents filed in the AI field [6][10] Summary by Sections Financial Performance - For the first half of 2024, the company achieved a net profit of 631 million yuan, a year-on-year increase of 56.18%, with a non-recurring net profit of 618 million yuan, up 61.60%. In Q2 2024, revenue was 1.564 billion yuan, a growth of 8.53%, and net profit was 336 million yuan, up 48.73% [6][10] - The company expects revenues of 7.118 billion yuan, 8.689 billion yuan, and 10.067 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 1.080 billion yuan, 1.347 billion yuan, and 1.553 billion yuan for the same years [10][11] Product Performance - The gaming segment's revenue is projected to grow from 5.360 billion yuan in 2024 to 7.535 billion yuan in 2026, with a gross margin of approximately 71.14% [8][10] - The company is set to launch new self-developed games, "Code LOA" and "Code DL," in 2024, which are expected to contribute to future revenue growth [6][10] Valuation and Forecast - The company is valued at a dynamic PE of 20-23 times for 2024, corresponding to a reasonable price range of 11.00-12.65 yuan per share [6][10] - The expected EPS for 2024, 2025, and 2026 is 0.55 yuan, 0.69 yuan, and 0.79 yuan respectively, indicating a strong growth trajectory [10][11]