Ultrapower(300002) Guoyuan Securities·2024-10-30 00:30Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company reported strong revenue growth and significant profit increase in Q3 2024, with total revenue reaching 4.514 billion yuan, a year-on-year increase of 11.42%, and net profit attributable to shareholders of 1.094 billion yuan, up 94.33% year-on-year [1] - The gaming business remains robust, with core mobile games continuing to perform well, and new games set to launch by the end of the year, which are expected to support future revenue growth [1] - The company has upgraded its cloud service brand and is actively exploring AI technology, enhancing its operational capabilities and expanding its customer base globally [1] Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 4.514 billion yuan, with a net profit of 1.094 billion yuan, reflecting a 94.33% increase year-on-year [1] - The Q3 2024 revenue was 1.461 billion yuan, a 4.53% increase year-on-year, while net profit for the quarter was 463 million yuan, up 191.43% year-on-year [1] - The company expects net profits for 2024-2026 to be 1.365 billion yuan, 1.419 billion yuan, and 1.625 billion yuan respectively, with corresponding EPS of 0.70, 0.72, and 0.83 yuan [1][2] Business Segments - The gaming segment is driven by established titles like "City of the Rising Sun" and "War Fire and Order," which continue to rank in the top 30 of China's mobile games [1] - The company plans to launch two new games in the "SLG + simulation management" category by the end of the year, which are expected to contribute to future growth [1] - The cloud service division has signed over 90 new customers this year and has expanded its services to more than 40 countries [1] Valuation Metrics - The company’s projected P/E ratios for 2024, 2025, and 2026 are 20, 19, and 16 respectively, indicating a favorable valuation outlook [2][6] - The company’s revenue is expected to grow at a CAGR of approximately 11.05% from 2024 to 2026 [7]