G-bits(603444) 长城证券·2024-11-04 09:17Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the industry index within the next six months [10]. Core Views - The company's Q3 2024 performance was under pressure, with a revenue of 859 million yuan, a year-on-year decrease of 10.36% and a quarter-on-quarter decrease of 16.83%. The net profit attributable to shareholders was 140 million yuan, down 23.82% year-on-year and 47.19% quarter-on-quarter [1][3]. - Despite the pressure on profits, the company announced a quarterly dividend of 2 yuan per share, totaling 144 million yuan, with a cumulative dividend of 466 million yuan for the first three quarters of 2024, representing a payout ratio of 71% [1][3]. - The report anticipates revenue growth for 2024-2026, projecting revenues of 3.686 billion yuan, 4.372 billion yuan, and 4.609 billion yuan respectively, with net profits of 925 million yuan, 1.129 billion yuan, and 1.218 billion yuan [3]. Financial Summary - For Q3 2024, the company reported a revenue of 859 million yuan, a decrease of 10.36% year-on-year and 16.83% quarter-on-quarter. The net profit attributable to shareholders was 140 million yuan, down 23.82% year-on-year and 47.19% quarter-on-quarter [1]. - The company's revenue for 2022 was 5.168 billion yuan, which decreased to 4.185 billion yuan in 2023, with an expected further decline to 3.686 billion yuan in 2024 [1][5]. - The report highlights a significant increase in sales expense ratio to 28.9% due to increased marketing costs for new game launches, impacting overall profitability [3]. Game Performance - The report notes that the revenue from major existing games has shown a significant narrowing of decline in Q3, with "Wandao" PC game revenue reaching 881 million yuan in the first three quarters of 2024, a year-on-year increase of 7.7% [2]. - New games such as "Zhang Jian Chuan Shuo" and "Wang Du Chuang Shi Lu" are expected to launch in the first half of 2025, which may help stabilize and improve revenue [2].