YAOJI TECHNOLOGY(002605) Guoxin Securities·2024-09-01 07:40Investment Rating - The report maintains an "Outperform" rating for the company [3][7][11] Core Views - The company experienced a year-on-year decline in revenue and net profit in the first half of 2024, with revenue at 1.908 billion yuan and net profit at 284 million yuan, representing declines of 18.65% and 30.29% respectively [4][6] - The gaming and digital marketing segments saw significant revenue drops, but there is potential for a rebound in the second half of the year due to lower comparative bases from the previous year [6][7] - The company is focusing on emerging sectors such as card collectibles and has made strategic investments in related businesses, indicating a proactive approach to diversifying revenue streams [6][7] Summary by Sections Financial Performance - In H1 2024, the company reported revenue of 1.908 billion yuan and a net profit of 284 million yuan, with a diluted EPS of 0.66 yuan [4][6] - Q2 2024 saw revenue of 927 million yuan and a net profit of 133 million yuan, with a diluted EPS of 0.32 yuan [4][6] - The gaming business generated 513 million yuan in revenue, down 27.28% year-on-year, while the digital marketing business brought in 879 million yuan, down 20.29% [6][7] Business Segments - The gaming segment remains stable with popular titles in both domestic and international markets, although revenue has declined due to high comparative bases and product cycles [6][7] - The card business is expanding, with investments in platforms for sports and cultural collectibles, positioning the company favorably in this emerging market [6][7] Future Outlook - The company forecasts net profits of 667 million yuan, 752 million yuan, and 803 million yuan for 2024, 2025, and 2026 respectively, with corresponding diluted EPS of 1.62 yuan, 1.82 yuan, and 1.95 yuan [7][9] - The current stock price corresponds to a PE ratio of 13, 11, and 11 for the years 2024, 2025, and 2026, indicating a reasonable valuation [7][9]