G-bits(603444) KAIYUAN SECURITIES·2024-10-25 09:10Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the decline in revenue from older games may slow down, and new product cycles are expected to drive growth [1][4] - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 9.25 billion, 11.55 billion, and 13.09 billion respectively, with corresponding EPS of 12.84, 16.03, and 18.17 [2][5] Financial Performance Summary - In Q3 2024, the company reported revenue of 859 million (down 10.36% YoY, down 16.83% QoQ) and a net profit of 140 million (down 23.82% YoY, down 47.19% QoQ) [2][3] - The decline in performance is attributed to reduced revenue and profits from key games such as "Wandao" and "Yinian Xiaoyao" [2][3] - The company plans to distribute a cash dividend of 20 yuan for every 10 shares [2] Game Revenue Trends - The revenue from the core game "Wandao" in H1 2024 was 656 million (up 16.31% YoY), while Q3 2024 revenue was 225 million (down 11.42% YoY) [3] - The mobile game "Wandao" saw H1 2024 revenue of 1.155 billion (down 14.66% YoY) and Q3 2024 revenue of 457 million (down 12.62% YoY) [3] - The overseas revenue for the company reached 369 million in the first nine months of 2024, showing a significant increase of 99.57% YoY [3] New Product Pipeline - The company has a rich pipeline of games that have received approval and are expected to launch soon, including "Yixiang Echo" and "Wangdu Creation Record" [4] - The launch of these new games is anticipated to offset the decline in revenue from older titles and further drive company growth [4]