Ultrapower(300002) 国投证券·2024-10-30 01:23Investment Rating - The report maintains a "Buy-A" rating for the company, with a target price of 17.75 CNY for 12 months [6][4]. Core Insights - The company's revenue for the first three quarters of 2024 was 45.14 billion CNY, representing a year-on-year growth of 11.42%, while the net profit attributable to shareholders was 10.94 billion CNY, up 94.33% year-on-year [5][6]. - The significant increase in net profit in Q3 2024 was primarily due to non-recurring gains, including the recovery of litigation receivables that reduced previously accrued bad debt provisions [1]. - The company’s gross margin for the first three quarters was 61.95%, remaining stable, while the sales expense ratio decreased significantly due to reduced promotional expenses [1]. Financial Performance Summary - The company achieved revenues of 14.88 billion CNY, 15.64 billion CNY, and 14.61 billion CNY in Q1, Q2, and Q3 respectively, with net profits of 2.95 billion CNY, 3.36 billion CNY, and 4.63 billion CNY for the same periods [1]. - The projected net profits for 2024, 2025, and 2026 are 13.75 billion CNY, 13.89 billion CNY, and 15.78 billion CNY respectively, with corresponding EPS of 0.70 CNY, 0.71 CNY, and 0.80 CNY [4][6]. Product and Market Insights - The company’s subsidiary, Kemu Games, focuses on the overseas mobile game market and has maintained a strong performance in the SLG segment, ranking among the top six Chinese game developers in overseas revenue from July to September [2]. - Two new SLG games are set to launch overseas by the end of the year, which are expected to leverage the company's strengths in game development and operation, potentially contributing to revenue growth [3]. Valuation Metrics - The company is expected to have a PE ratio of 25 times for 2025, which corresponds to the target price of 17.75 CNY [4].