PWRD(SZ:002624) Soochow Securities·2024-11-04 00:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's operational performance in the gaming sector has shown improvement, and there is anticipation for the new product cycle to materialize [1][5] - The company reported a total revenue of 4.073 billion yuan for the first three quarters of 2024, a year-on-year decrease of 34.26%, with a net profit attributable to shareholders of -389 million yuan, a year-on-year decline of 163.25% [2][3] - The gaming business generated revenue of 1.22 billion yuan in Q3 2024, reflecting a decline due to the natural decline of older games and the absence of new game launches [3] Financial Performance Summary - Total revenue for 2022 was 7.670 billion yuan, with a year-on-year decrease of 9.95%. For 2023, revenue was 7.791 billion yuan, a slight increase of 1.57%. The forecast for 2024 is 5.259 billion yuan, a significant decline of 32.49% [1][10] - The net profit attributable to shareholders for 2022 was 1,377.19 million yuan, with a year-on-year increase of 273.07%. In 2023, it dropped to 491.48 million yuan, a decrease of 64.31%. The forecast for 2024 is -596.11 million yuan, indicating a decline of 221.29% [1][10] - The latest diluted EPS for 2023 was 0.25 yuan, with a forecast of -0.31 yuan for 2024, followed by 0.49 yuan in 2025 and 0.60 yuan in 2026 [1][10] Game Development Pipeline - The flagship game "Zhu Xian World" is scheduled for public testing on December 19, 2024, with over 2 million pre-registrations [4] - The game "Yihuan," a multi-platform open-world game, has begun its first testing recruitment, with significant pre-registration numbers on platforms like Bilibili and TapTap [4] - The company is focusing on optimizing its resources and developing its competitive product categories, with a clear pipeline and ample reserves for future releases [4]