Ultrapower(SZ:300002) Guohai Securities·2024-09-12 07:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the company's main product launch control has released profits, leading to an optimistic outlook for annual performance growth [2][3] - The company is focusing on innovation-driven strategies and global expansion, particularly in the gaming and software information technology service sectors [5] Revenue Performance - In H1 2024, the company's operating revenue reached 3.05 billion yuan, representing a year-over-year increase of 15%. The revenues for Q1 and Q2 were 1.49 billion yuan and 1.56 billion yuan, respectively, with year-over-year growth of 22.8% and 8.5% [2] - The gaming and computer segments contributed revenues of 2.43 billion yuan and 627 million yuan in H1 2024, with year-over-year growth of 12% and 28.4%, respectively [2] - The AI/ICT operational management revenue was 540 million yuan, showing a year-over-year increase of 27% [2] Profitability Metrics - The gross profit for H1 2024 was 1.9 billion yuan, with a gross margin of 62.3%, a slight decrease of 0.7 percentage points year-over-year [2] - The net profit attributable to the parent company for H1 2024 was 630 million yuan, reflecting a year-over-year increase of 56.2% [2] Expense Analysis - Sales expenses for H1 2024 were 550 million yuan, down 21.6% year-over-year, primarily due to reduced marketing for key gaming products [2] - Management expenses increased by 42.9% year-over-year to 500 million yuan, mainly due to higher employee compensation [2] Future Earnings Forecast - The company forecasts operating revenues of 6.69 billion yuan, 7.70 billion yuan, and 8.65 billion yuan for 2024, 2025, and 2026, respectively [6] - The net profit attributable to the parent company is projected to be 1.23 billion yuan, 1.41 billion yuan, and 1.63 billion yuan for the same years [6] Market Position - The company is positioned among the top tier of Chinese gaming companies, with a strong focus on leveraging new technologies such as AI to drive growth [5] - The competitive landscape in the SLG mobile game sector remains intense, with the company actively managing product launches to optimize profitability [4][5]