Ultrapower(SZ:300002) Haitong Securities·2024-11-04 05:41Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1] Core Views - The company has shown impressive performance in the first three quarters of 2024, with revenue reaching 4.514 billion yuan, a year-on-year increase of 11.42%, and net profit attributable to the parent company at 1.094 billion yuan, up 94.33% year-on-year [5] - The third quarter of 2024 saw a significant increase in net profit, achieving 1.463 billion yuan, a year-on-year growth of 191.43%, driven by effective cost control and a recovery of bad debt provisions [5] - The company’s existing games have performed well, particularly in overseas markets, with its subsidiary ranking high in revenue among Chinese game developers [6] Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported revenue of 4.514 billion yuan, a growth of 11.42% year-on-year, and a net profit of 1.094 billion yuan, which is a 94.33% increase year-on-year [5] - In Q3 2024, revenue was 1.461 billion yuan, up 4.53% year-on-year, and net profit reached 463 million yuan, reflecting a 191.43% increase year-on-year [5] Product Development - The company is focusing on new product launches, with two self-developed games, "Code LOA" and "Code DL," expected to be released overseas by the end of 2024 [6] - The existing games, "Sunrise City" and "War Fire and Order," have shown stable revenue performance, contributing to the company's solid financial base [6] Earnings Forecast and Valuation - The revenue forecast for 2024-2026 is projected at 7.118 billion, 8.689 billion, and 10.067 billion yuan respectively, with net profits expected to be 1.207 billion, 1.344 billion, and 1.547 billion yuan [7] - The estimated EPS for 2024-2026 is projected to be 0.61, 0.68, and 0.79 yuan respectively, with a dynamic PE ratio of 25-30 times for 2025, leading to a target price range of 17.00-20.40 yuan per share [7]