YAOJI TECHNOLOGY(002605) KAIYUAN SECURITIES·2024-11-01 10:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown an improvement in the growth rate of its net profit after deducting non-recurring items in Q3 2024, indicating a recovery in its main business and new ventures [1] - The decline in revenue for the first three quarters of 2024 is attributed to adjustments in the digital marketing segment and fluctuations in the gaming segment's recharge flow [1] - The company expects a rebound in its poker and gaming businesses, which will drive performance growth [1] Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 2.79 billion yuan (down 21.89% year-on-year) and a net profit of 424 million yuan (down 23.95% year-on-year) [1] - In Q3 2024, the company achieved revenue of 881 million yuan (down 28.08% year-on-year, down 4.92% quarter-on-quarter) and a net profit of 140 million yuan (down 6.72% year-on-year, up 4.92% quarter-on-quarter) [1] - The gross profit margin for Q3 2024 was 40.17% (up 9.87 percentage points year-on-year, up 4.49 percentage points quarter-on-quarter) [2] - The net profit margin for Q3 2024 was 15.88% (up 3.64 percentage points year-on-year, up 1.49 percentage points quarter-on-quarter) [2] Business Segment Insights - The core gaming business remains stable, with the game "Finger Fishing" maintaining a position in the top 150 of the iOS bestseller list, contributing consistent revenue [3] - The investment in the card trading platform is expected to benefit from the high popularity of the Olympics and sports IP, leading to significant growth in GMV and positive contributions to the company's performance [3] Earnings Forecast - The company has adjusted its profit forecast for 2024-2026, expecting net profits of 609 million yuan, 782 million yuan, and 852 million yuan respectively, with corresponding EPS of 1.47 yuan, 1.89 yuan, and 2.06 yuan [1] - The current stock price corresponds to P/E ratios of 17.2, 13.4, and 12.3 for the years 2024, 2025, and 2026 respectively [1]