CENTURY HUATONG(002602) 海通证券·2024-09-05 08:15Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Views - The company achieved significant revenue and profit growth in 24H1, with revenue reaching 9.276 billion yuan, a year-on-year increase of 53.33%, and net profit attributable to the parent company reaching 1.158 billion yuan, a year-on-year increase of 33.41% [3] - Overseas revenue grew by 115.28% year-on-year to 5.019 billion yuan, accounting for 54.11% of total revenue [3] - The company's internet gaming business revenue reached 8.512 billion yuan in 24H1, a year-on-year increase of 72.92%, with mobile gaming revenue accounting for 73.14% of total revenue [4] - The company's Legend IP integration contributed to an 80% year-on-year increase in related revenue, becoming a new growth engine [4] - The company is expanding into AI cloud data services, with the Shanghai data center project achieving profitability in the first half of the year [4] Financial Performance and Forecast - The company's revenue is expected to grow from 13.285 billion yuan in 2023 to 21.309 billion yuan in 2026, with a CAGR of 15.8% [5] - Net profit is forecasted to increase from 52.4 million yuan in 2023 to 3.374 billion yuan in 2026, with a significant turnaround in profitability [5] - The company's EPS is expected to grow from 0.07 yuan in 2023 to 0.45 yuan in 2026 [5] - The company's gross margin is projected to remain stable at around 60% from 2023 to 2026 [5] Business Segments - Mobile gaming revenue is expected to grow from 7.793 billion yuan in 2023 to 12.367 billion yuan in 2026, maintaining a gross margin of 68.59% [6] - PC gaming revenue is forecasted to increase from 3.133 billion yuan in 2023 to 4.972 billion yuan in 2026, with a gross margin of 70.76% [6] - The company's cloud data services are expected to grow from 2 million yuan in 2023 to 96 million yuan in 2026, with the segment turning profitable by 2026 [6] Valuation and Peer Comparison - The company's 2024E P/E ratio is 13.63x, lower than the peer average of 15x [7] - The company's 2024E P/B ratio is 1.21x, indicating a relatively low valuation compared to peers [7] - The company's 2024E P/S ratio is 2.06x, slightly higher than the peer average of 1.78x [7]