G-bits(603444) 申万宏源·2024-10-28 00:41Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Insights - The company reported a Q3 revenue of 860 million, a year-on-year decline of 10%, and a net profit attributable to shareholders of 140 million, down 24% year-on-year. The performance was weaker than market expectations [4]. - The core product, "Wandao" mobile game, faced pressure in Q3 due to competitive environment, version/activity pacing, and consumer fatigue, although overall revenue remains within normal fluctuation range. A new feature server for "Wandao" is expected to boost revenue in November [4]. - The company experienced a foreign exchange loss of approximately 27 million in Q3, compared to a loss of 12 million in Q3 2023, impacting the profit statement. The cash dividend for Q3 was 144 million, corresponding to a dividend payout ratio of 103% [4][5]. - The company has a rich pipeline of game approvals, with several self-developed titles expected to launch in the first half of 2025. The overseas revenue increased by over 70% due to the launch of "Monster Never Cry" in Hong Kong and Taiwan [4]. Financial Summary - The company’s total revenue for 2023 is projected at 4,185 million, with a year-on-year decline of 19%. The net profit for 2023 is estimated at 1,125 million, down 23% year-on-year [6]. - Revenue forecasts for 2024-2026 are adjusted to 3,730 million, 4,075 million, and 4,314 million respectively, with net profits of 892 million, 1,016 million, and 1,146 million for the same periods [5][6]. - The report indicates a projected PE ratio of 17x for 2024, 15x for 2025, and 13x for 2026, reflecting the company's stable core product trend and upcoming new product cycle [5].