YAOJI TECHNOLOGY(002605) 国泰君安·2024-11-03 04:55Investment Rating - The report maintains a "Buy" rating for the company [5][4] Core Views - The company's Q3 performance met expectations, with a focus on the improvement of poker card production capacity and the development of the trading card business [2][4] - The target price has been raised to 38.96 CNY from the previous 30.05 CNY, based on an average valuation of 26x PE for 2024 [5][4] - The company is expected to achieve EPS of 1.56, 1.86, and 2.19 CNY for the years 2024, 2025, and 2026 respectively [4][3] Financial Summary - For Q3 2024, the company reported revenue of 881 million CNY, a decrease of 4.92% quarter-on-quarter and a decrease of 28.08% year-on-year [1] - The net profit attributable to the parent company for Q3 2024 was 139 million CNY, an increase of 4.91% quarter-on-quarter but a decrease of 6.73% year-on-year [1] - The gross profit margin improved to 19.49% in Q3 2024, an increase of 5.9 and 3.5 percentage points compared to the previous quarter and year respectively [1] - The company’s total revenue for the first three quarters of 2024 was 2.79 billion CNY, a year-on-year decrease of 21.89% [1] Production Capacity and Business Development - The company is advancing its project to establish a production base for 600 million decks of poker cards, which is expected to increase production capacity by 79.37% upon completion [1] - The trading card business is expected to grow significantly, with the global market projected to reach 98.7 billion USD by 2027, indicating substantial growth potential in the domestic market [1]