G-bits(603444) Soochow Securities·2024-10-27 08:10Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's performance in Q1-Q3 2024 showed a revenue of 2.818 billion yuan, down 14.77% year-on-year, and a net profit attributable to shareholders of 658 million yuan, down 23.48% year-on-year, indicating slightly lower-than-expected results [2] - The decline in revenue is attributed to the natural decline of existing games, with expectations for new games to drive future growth [2] - The company announced a cash dividend of 20 yuan per 10 shares, totaling 144 million yuan, reflecting a high dividend payout ratio of 70.94% of net profit for the period [3] - The earnings forecast has been adjusted downwards, with expected EPS for 2024-2026 at 12.05, 14.30, and 15.34 yuan respectively, corresponding to P/E ratios of 18, 15, and 14 times [3] Summary by Relevant Sections Financial Performance - In Q3 2024, the company achieved revenue of 859 million yuan, down 10.36% year-on-year and 16.83% quarter-on-quarter, with a net profit of 140 million yuan, down 23.82% year-on-year and 47.19% quarter-on-quarter [2] - The decline in revenue is primarily due to decreased revenue from existing games, with specific games showing significant year-on-year declines [2] - The company expects the revenue from existing games to stabilize, while new games are anticipated to launch in 2025, which could drive revenue growth [2] Dividend Policy - The company has a strong commitment to returning cash to shareholders, with a total cash dividend of 4.66 billion yuan expected for Q1-Q3 2024, representing 70.94% of net profit [3] Earnings Forecast - The earnings forecast has been revised down, with expected EPS for 2024 at 12.05 yuan, down from a previous estimate of 13.13 yuan [3] - The company is expected to see a stabilization in existing game revenues and growth driven by new game launches [3]