Ultrapower(SZ:300002) Southwest Securities·2024-09-05 07:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is expected to achieve a net profit of 11.7 billion yuan, 13.6 billion yuan, and 15.7 billion yuan for the years 2024-2026, corresponding to PE ratios of 15x, 13x, and 11x respectively. The core products are performing steadily, and the software service business is contributing to performance elasticity and potential new growth points [3][10] Summary by Sections Financial Performance - In the first half of 2024, the company achieved revenue of 30.5 billion yuan, a year-on-year increase of 15.0%, and a net profit attributable to shareholders of 6.3 billion yuan, up 56.2% year-on-year. The second quarter alone saw revenue of 15.6 billion yuan, a year-on-year increase of 8.5%, and a net profit of 3.4 billion yuan, up 48.7% year-on-year [5] - The company's game products generated revenue of 24.3 billion yuan in the first half of 2024, a year-on-year increase of 12.0%, with a gross margin of 72.9%, an increase of 2.7 percentage points from the previous year [5] Business Strategy - The company is focusing on a long-term development strategy through its subsidiary, Kemu Games, which emphasizes high-quality SLG game products and collaboration between R&D and distribution. The main products include "Age of Origins," "War and Order," and "Infinite Galaxy," with a customer base spanning over 150 countries and regions [5] - The company has two upcoming SLG fusion games, "Dreamland" and "LOA," expected to launch overseas in the second half of 2024, both developed using the Unity3D engine [5] Earnings Forecast - The company anticipates revenue growth rates of 14%, 13%, and 13% for its software and information technology services from 2024 to 2026, with a stable gross margin of 30%. For its gaming business, revenue growth rates are expected to be 16%, 15%, and 15% during the same period, with a stable gross margin of 72% [10][11]