E-Soul(SH:603258) Tai Ping Yang·2024-09-02 05:03Investment Rating - The report maintains an "Accumulate" rating for the company [1]. Core Views - The company experienced a revenue decline of 14.52% year-on-year in H1 2024, with a revenue of 272 million yuan and a net profit of 59.31 million yuan, down 31.57% year-on-year [1][2]. - The decline in revenue is attributed to product cycle impacts, with a significant reduction in game recharge income, while interest income and government subsidies contributed positively [2]. - The company has a rich pipeline of new games set to launch in the second half of 2024, including "Xiu Xian Era" and "Barbarian Battle 2," which are expected to drive revenue growth [3]. - The company is exploring a new "Cultural Tourism + E-sports" model, which aims to enhance user experience through digitalization of scenic spots and cultural promotion [3]. - A high dividend payout ratio of 95.18% is planned, with a cash dividend of 2.32 yuan per 10 shares, reflecting a commitment to returning value to shareholders [4]. Financial Summary - Revenue projections for 2024-2026 are estimated at 760 million, 858 million, and 974 million yuan, with corresponding growth rates of 12.24%, 12.94%, and 13.48% [5]. - Net profit forecasts for the same period are 181 million, 215 million, and 229 million yuan, with growth rates of 217.72%, 18.88%, and 6.69% [5]. - The company’s earnings per share (EPS) is projected to increase from 0.74 yuan in 2024 to 0.94 yuan in 2026 [8].