SANQI HUYU(002555) 国投证券·2024-09-10 07:40Investment Rating - The report assigns a "Buy-A" rating to the company with a target price of 17.22 CNY based on a 14x PE for 2024 [4][7]. Core Insights - The company is recognized as a leading player in the domestic gaming industry, successfully navigating through multiple industry transformations and focusing on a strategy of "premiumization, diversification, and globalization" [2][7]. - The company has established a robust integrated research and operation system, enhancing its product offerings and operational efficiency through the application of AI and data analytics [19][24]. - The gaming market is witnessing significant growth in both overseas expansion and mini-games, which are expected to provide new growth momentum [3][36]. Summary by Sections Company Overview - The company has successfully transformed through four major industry changes, including the shift from web games to mobile games and the adoption of a buy-in advertising model [10][11]. - The founding team retains significant control, holding 34.77% of the shares, ensuring strategic continuity [12]. Financial Performance - The company reported a revenue of 92.32 billion CNY in the first half of 2024, a year-on-year increase of 18.96%, with a net profit of 12.6 billion CNY, up 3.15% [14]. - The gross margin has remained high, with a projected gross margin of 79.3% for 2024 [45]. Product Strategy - The company has adopted a "dual-core + diversified" product strategy, focusing on MMORPG and SLG genres while expanding into card games and simulation games [28][29]. - Successful titles include "Douluo Dalu: Soul Master Duel" and "Puzzles & Survival," contributing to a strong product matrix with multiple games generating over 100 million CNY in monthly revenue [29][38]. Future Growth Drivers - The company is positioned to benefit from the growing trend of game exports, with overseas revenue accounting for 35.1% of total income in 2023 [3][38]. - The mini-game market has shown rapid growth, with expectations for continued expansion in 2024, particularly in overseas markets [40][41]. Investment Outlook - The company is expected to achieve net profits of 27.36 billion CNY, 31.99 billion CNY, and 34.61 billion CNY for 2024, 2025, and 2026, respectively [7][43]. - The report emphasizes the company's strong potential in the mini-game sector and overseas markets as key areas for future growth [7][36].