G-bits(603444) Orient Securities·2024-10-30 00:43Investment Rating - The report maintains a "Buy" rating for the company with a target price of 212.50 CNY [3][2] Core Insights - The company is expected to enter the peak season for its core product "Wandao" in Q4, with several new games set to launch [1] - Q3 2024 revenue was 859 million CNY, a year-over-year decline of 10.36% and a quarter-over-quarter decline of 16.83%, primarily due to decreased revenue from key products [1] - The company anticipates a revenue increase in Q4 2024, driven by the launch of new games and seasonal activities [1] - Q3 2024 net profit attributable to shareholders was 140 million CNY, down 23.82% year-over-year and 47.19% quarter-over-quarter [1] Financial Summary - Revenue for 2024 is projected at 3.762 billion CNY, with a year-over-year decline of 10.1% [2] - The company expects net profits of 901 million CNY in 2024, down 19.9% year-over-year [2] - Gross margin for Q3 2024 was 89%, an increase of 2% year-over-year and quarter-over-quarter [1] - The company has several self-developed games in the pipeline, including "Xiu Xian Fang Zhi" and "Zhang Jian Chuan Shuo," which have already obtained licenses [1]