Ultrapower(300002) KAIYUAN SECURITIES·2024-10-29 13:50Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has continued to show high growth in Q3, with a focus on the performance of new game launches [1] - For the first three quarters of 2024, the company achieved operating revenue of 4.514 billion yuan (up 11.42% year-on-year) and a net profit attributable to shareholders of 1.094 billion yuan (up 94.33% year-on-year) [3] - The growth in net profit for Q3 was primarily due to the recovery of approximately 245 million yuan from litigation receivables, which offset previously provisioned bad debts [3] - The company is optimistic about the performance of new games and AI-related businesses driving future growth, leading to an upward revision of profit forecasts for 2024-2026 [3] Financial Performance Summary - In Q3 2024, the company reported operating revenue of 1.461 billion yuan (up 4.53% year-on-year) and a net profit of 463 million yuan (up 191.43% year-on-year, up 37.72% quarter-on-quarter) [3] - The gross margin for Q3 2024 was 61.19% (down 2.13 percentage points year-on-year, up 0.15 percentage points quarter-on-quarter) [4] - The company expects net profits for 2024, 2025, and 2026 to be 1.374 billion yuan, 1.414 billion yuan, and 1.629 billion yuan respectively, with corresponding EPS of 0.70 yuan, 0.72 yuan, and 0.83 yuan [3][6] New Game Launches and AI Business - The company is set to launch two new SLG games, "Code DL" and "Code LOA," overseas by the end of 2024, which are expected to contribute to long-term performance growth [5] - The company is also leveraging AI technology in various applications, which may open new growth opportunities in its computer business and enhance efficiency in its gaming operations [5]